The use of tokens as a mechanism for accessing discounts on protocol fees is a vital aspect of the Dexible platform. The $DXBL token serves this purpose by providing a discount on fees for its holders. All minted $DXBL go straight to the trader's wallet.
Discounts are only applied for $DXBL tokens that are held in the trader's wallet. That means if the trader decides to swap or stake their $DXBL on a secondary market, those $DXBL tokens will not count towards their discount trading through the protocol.
Each $DXBL token has a specific discount associated with it, with a rate of 0.05% (5 basis points) per token. This means that for every 1,000 $DXBL tokens a wallet holds, it will receive a reduction of 50% when trading through the protocol.
To ensure that the Community Vault is always growing, we have set a minimum protocol fee of 4bps. This means to receive the full discount, a wallet must hold a minimum of 1,000 $DXBL tokens. If more that 1,000 $DXBL is held, no additional discount will be applied.
Conversely, if a trader only holds a small number of $DXBL tokens, they will still receive a discount on protocol fees. This incentivizes users to hold $DXBL tokens, drive volume to the platform while also encouraging burning to capitalize on $DXBL NAV.