PBG Token Fee Structure Explained
PBG Token Fees Structure Explained
Are there any fees associated with using PBG Token? Yes, PBG Token operates with a transparent fee structure on the Cardano blockchain to ensure the sustainability of its Decentralized Vault Portfolios (DVPs). Learn about the fees involved and how they support your DeFi experience with PBG.
Are there any fees associated with using PBG Token? Yes, PBG Token operates with a transparent fee structure on the Cardano blockchain to ensure the sustainability of its Decentralized Vault Portfolios (DVPs). Learn about the fees involved and how they support your DeFi experience with PBG.
Overview of PBG Token Fees
PBG Token is designed to provide a secure and decentralized platform, and a small fee structure helps maintain its operations on the Cardano blockchain. These fees are applied transparently, ensuring alignment between the protocol and its users. Here’s a breakdown of the fees associated with using PBG Token:
Overview of PBG Token Fees
PBG Token is designed to provide a secure and decentralized platform, and a small fee structure helps maintain its operations on the Cardano blockchain. These fees are applied transparently, ensuring alignment between the protocol and its users. Here’s a breakdown of the fees associated with using PBG Token:
Success Fee
A performance-based fee, up to 30% on any returns exceeding a 5% benchmark (e.g., relative to ADA), is applied annually if the portfolio outperforms, tracked via on-chain NFT vouchers.
Minting Fee
A small fee is charged when you deposit ADA to mint PBG Tokens, typically ranging from 0.1% to 2% of the transaction value, covering operational costs.
Management Fee
A daily fee of approximately 0.01% (equivalent to 3.65% annually) is deducted by diluting the token supply, supporting the ongoing management of the DVPs.
Burning Fee
When withdrawing ADA by burning PBG Tokens, a similar fee of 0.1% to 2% applies, ensuring consistency in the process.
Success Fee
A performance-based fee, up to 30% on any returns exceeding a 5% benchmark (e.g., relative to ADA), is applied annually if the portfolio outperforms, tracked via on-chain NFT vouchers.
Minting Fee
A small fee is charged when you deposit ADA to mint PBG Tokens, typically ranging from 0.1% to 2% of the transaction value, covering operational costs.
Management Fee
A daily fee of approximately 0.01% (equivalent to 3.65% annually) is deducted by diluting the token supply, supporting the ongoing management of the DVPs.
Burning Fee
When withdrawing ADA by burning PBG Tokens, a similar fee of 0.1% to 2% applies, ensuring consistency in the process.
Why Fees Matter with PBG Token
These fees play a crucial role in PBG’s ecosystem, ensuring the platform remains secure, transparent, and accessible:
