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Protocol Fees and Expenditures
As AmpliFi collects Fees, Holders earn more Rewards.
AmpliFi. Copyright 2022. All rights reserved.
Maintaining an Amplifier costs 0.008 $ETH per month, which applies to all Amplifiers whether they are locked or unlocked. 100% of this fee is used to fund new validators, increase $ETH dividends, and account for Development expenses. You may pay this fee up to 6 (six) months in advance. Paying in advance helps the protocol earn more $ETH emissions. There is no cap on the number of Amplifiers you can own, but you are limited to 96 Amplifiers per wallet.
Failure to maintain an Amplifier: Individuals who redeem their tokens for an Amplifier must pay the Amplifier Operations Fee every 30 days to fund the acquisition of Ethereum Validators. Should a user fail to pay the fee, they will be unable to claim emissions of any kind. If an additional 30 days pass without payment of the Operations Fee, the Amplifier, whether locked or unlocked, will be shut down. Unclaimed emissions will be redirected to the protocol and used to purchase additional Validators or given to other holders to claim greater rewards.
Claiming #AMPLIFI rewards is subject to an automated claim fee of 6%. 50% of the claim fee is allocated to purchasing more #AMPLIFI to reduce circulating supply, and the remaining 50% supports operations and development. A standardized claim fee serves 3 primary functions:
- 1.Supports the recurrent removal of tokens from circulating supply;
- 2.Discourages aggressive swing trading;
- 3.Promotes claiming over a longer time horizon to ensure market stability and well-distributed sells
After 72 days, you can claim #AMPLIFI rewards with no time decay fee. Here's why: AmpliFi employs a "Gamma Expiry" feature called "Time Decay." In AmpliFi's time decay model, a holder is subject to a % fee if he claims native rewards before 72 days have passed. However, that fee decreases every day, as shown in the graph below. While Base Claim Fees are payable in $ETH, time decay fees are not actually "payable," but are instead subtracted from the quantity of #AMPLIFI rewards you would have claimed. Together, the base claim fee and time decay fee help to guard price stability without impacting investors' potential profit capture.
Linear Decrease in Penalty to 0% over 72 Days
Amplifiers produce native yield infinitely, and Amplifiers locked in Fuse pools also generate $ETH rewards for the entire lock period. To effectively balance supply and demand and maintain parity between the circulating and total supply of #AMPLIFI, AmpliFi's Smart Contracts include Claim Frequency Decay. Claim Frequency Decay activates when a holder claims #AMPLIFI rewards by slightly reducing yield each successive time #AMPLIFI is claimed. However, an active, operational Amplifier's yield will never reduce to 0%, nor does it impact $ETH emissions if a holder then chooses to lock his or her Amplifier. In fact, a holder may "boost" Amplifier native yield by locking the Amplifier in a Fuse pool, regardless of how many times he or she has claimed. For example, an Amplifier which has exhausted its annualized yield down to sub-5%, may then choose to lock the Amplifier in a 5 year Fuse pool for the additional 39% native yield.
Claim Frequency Decay counteracts sell pressure on the native token and ensures holders continue to earn high native yield. Should a holder choose to claim repeatedly on an expedited timeline, their native yield slightly decreases each time, allowing them to effectively de-risk their claims relative to future claims while also de-risking themselves as a potential liability to the total pooled sum of holders. Combined with a marginal claim fee (half of which is allocated to acquiring new Validators), the protocol guards against sell pressure, incentivizes fewer claims on the native token over time, and enables users to benefit from more stabilized price action on the #AMPLIFI token.
Logarithmic Yield Reduction
Users may increase their total native #AMPLIFI emissions at any time by locking their Amplifier(s) to a Fuse pool generating additional yield based on the lock selected. Locking your Amplifier offsets increases to the circulating supply and thus enhances the beneficial price impact of subsequent token purchases relative to the Liquidity Pool.
Likewise, a user may further increase their total native yield by acquiring new Amplifiers, as new Amplifiers always start with their initial APY (159%). Thus, stable purchase pressure – though never guaranteed – is incentivized through these mechanisms which collectively secure the AmpliFi platform, protect holders’ interests, and reward patience.
By the numbers: Users may claim #AMPLIFI emissions over 15 times before they risk underperforming the S&P 500’s Annual Percentage Yield (APY). After any number of claims, users may boost their yield again by locking their Amplifier in a Fuse pool.
A 2.75% acquisition fee is included in the cost of any #AMPLIFI purchase. These fees are swapped with a cadence that minimizes price action on the native token. This fee is distributed evenly for circulation reduction, yield amplification, rescue liquidity injections, marketing, development, operations, a planned OTC swap, $gAMP rewards, Ethereum validator acquisition, future cross-chain validator acquisition, and more.
A 2.75% base sell fee is incurred when selling #AMPLIFI into the Liquidity Pool. This fee is distributed evenly for circulation reduction, yield amplification, rescue liquidity injections, marketing, development, operations, a planned OTC swap, $gAMP rewards, Ethereum validator acquisition, future cross-chain validator acquisition, and more.
AmpliFi includes a variable sell tax to offset the effect periodically replenishing the rewards pool might otherwise have on price stability. The sell tax is directly correlated to the amount of #AMPLIFI tokens remaining in the rewards pool; as more rewards are distributed from the pool, the sell tax increases slightly in pre-set intervals of .25%. Thus, each time the rewards pool decreases linearly by 10%, the variable sell tax is raised by .25% as the pool nears replenishment.
Variable Tax Schedule:
- 100% Supply (standard 2.75% sell tax)
- 90% Supply (+.25%)
- 80% Supply (+.5%)
- 70% Supply (+.75%)
- 60% Supply (+1%)
- 50% Supply (+1.25%)
- 40% Supply (+1.5%)
- 30% Supply (+1.75%)
- 20% Supply (+2%)
- 10% Supply (+2.25%)
AmpliFi does not charge any fees to users for managing any Network Validators, nor does the Team take any fee or revenue as a "Management Fee" on any Network Validator.
Example: If Validators generate $10,000 worth of $ETH, 100% of that $ETH is directed to the protocol and funneled to holders. AmpliFi pays for all validator expenses through operational funds.
Liquidity Mining is a vital aspect of AmpliFi's growth, particularly in attracting larger, more liquid holders. Miners are not taxed entering or exiting the Mining Program. When claiming rewards from the Liquidity Mining Program, holders are subject to a 2% claim fee, which is redirected towards accumulating additional validators.
Creating an Amplifier incurs a 0.008 $ETH premium, which is built into gas costs. This fee supports validator acquisition and project development. To create an Amplifier, exchange 20 #AMPLIFI for an Amplifier through the AmpliFi DApp. Note: During Amplifier creation, the user also pays the 1st month (30 days) of the Amplifier's monthly operations fee.
Any holder who locks an Amplifier in the Fuse pool can mint $gAMP tokens; the cost to mint is 0.001 $ETH. $gAMP rewards can be claimed from the pool every 30 days, with a 6% fee also factored into the gas cost. If the holder stops paying his monthly Amplifier Operations Fee, the $gAMP token stops accruing yield, and therefore cannot be claimed. After 60 days of nonpayment, the Amplifier ceases to accrue yield and the $gAMP token is effectively destroyed.
The Staking Pool is a safer, albeit lower yield strategy to accrue #AMPLIFI over time. Joining the staking pool offers a hedge against Amplifier yield decay and enables smaller holders to build larger #AMPLIFI positions over time. Entering and exiting the Staking Pool is now zero-fee.
To Lock your Amplifier in a Fuse pool, you'll submit a one-time fee of 0.008 $ETH, which is built-in to the gas price. This fee is allocated to towards validator acquisition.
Copyright 2022. AmpliFi. All rights reserved.
Last modified 7mo ago