the flame fee
the petals are a fixed schedule. the flame fee is the part of the fire that grows with trading.
what it is
for the 5 days of a coin's bloom, TBD of the trading fees collected on that coin are used to buy the coin back from its pool — and the coins bought are burned in the same fire as the petals.
- it only applies to the coin being traded. fees on $HANABI burn $HANABI.
- it only applies during the bloom. when the last petal burns, the flame fee switches off for good.
- it is on top of the petals: the more a coin trades during its bloom, the lighter it ends.
how buybacks are executed
- every trade on a blooming coin pays the trading fee (TBD).
- the flame share of that fee accumulates in the coin's contract, in HYPE.
- the accumulated HYPE is swapped for the coin in the coin's own pool and sent to the burn address. this happens at least at every petal burn, and more often when the amount is large enough to be worth the gas.
- every buyback is an on-chain transaction, visible in the coin's burn history.
tokens burned by one buyback (constant-product pool)
burned = Y − (X × Y) ÷ (X + f)
where X, Y are the pool's HYPE and token reserves and f is the HYPE used
why only during the bloom
the first days after a graduation are when a coin trades the most — and when it is most fragile. putting a share of those fees back into the coin, right then, rewards the people who stay and gives the fire something to eat. after five days the coin stands on its own: no fee is diverted forever.
numbers
| parameter | value | | --- | --- | | trading fee | TBD | | flame share of the trading fee (bloom only) | TBD | | duration | 5 days, from bloom to last petal |
in the testnet simulation the flame share is 50% of a 1% fee.