Transfer Fee Mechanism
Most tokens on HoT platform are created and managed by eosio.token contract, like HOT and HGBP . When transfering these tokens between HoT accounts, an extra amount of fee will be charged by HoT system.
We introduce this transfer fee mechanism for 2 reasons-
1. Avoid resource abuse
HoT is built based on EOSIO system. EOSIO provides a stake system to prevent system resource abuse, which works well most of the time. But when transaction traffic is heavy on EOS platform, resourse price may become extremely high. One has to stake thousands of EOS token to send a transaction on the platform.
To improve this situation, we charge a small share of fee for the transfer transaction, which is the most frequent type of transaction.
This mechanism works togather with the original stake mechanism, which helps HoT platform to avoid resource abuse more effectively.
2. A way to sponsor producers
Producers are decentralized entities that govern the HoT platform. Producers will produce the blocks of the blockchain.
As there is no regular inflation to sponsor producers on HoT platform, we need a different way to sponsor producers. Fees collected by transfer generates a pool for producers sponsor.
Every producer successfully created some blocks can claim it’s share of earnings from the fee pool. This sponsor mechanism attractes more participant of the platform.
Fee Rate
Fees are charged base on the amount of assets one transfers. No matter what asset one transfers, HoT platform only charges HOT asset for fee. This means one has to have enough HOT asset to transfer any kind of asset.
For now, HoT fee rate is 1‰ or at least 0.001 HOT.
For example, Alice transfers 1011.2 HOT to Bob. Alice will spend 1011.2 + 1011.2 * 1 / 1000 = 1012.2112 HOT, and Bob will receive 1011.2 HOT, 1011.2 * 1 / 1000 = 1.0112 HOT will go to the fee pool.
Another example, Alice transfers 0.00021 HGBP to Bob. Alice will spend 0.00021 HGBP and 0.001 HOT for fee , and Bob will receive 0.00021 HGBP, 0.001 HOT will go to the fee pool.