Tokenomics & Revenue Model
Unit Network's transparent fee model ensures sustainable growth — every transaction strengthens the ecosystem through predictable, four-way distribution.
Fee Structure
| Action | Fee | Distribution |
|---|---|---|
| Exchange Trade | 2% | Split four ways (see below) |
| Withdrawal | 1% | Split two ways (see below) |
| Transfer | Free | — |
| Staking / Unstaking | Free | — |
| Bond Staking | Free | — |
| Token Creation | Free | — |
Exchange Fee Breakdown (2%)
Every trade on Unit Network's DEX incurs a 2% fee, distributed equally:
| Recipient | Share | Purpose |
|---|---|---|
| UNIT Treasury | 0.5% | Builds the network-wide reserve, strengthening UNITCOIN's floor price |
| Token Treasury | 0.5% | Backs the specific token being traded |
| Liquidity Pool | 0.5% | Deepens market liquidity, rewarding LPs |
| Vault | 0.5% | Rewards vault operators who provide custody |
Example: 100 USDU Trade
User buys 100 USDU worth of TOKEN
├── 0.50 USDU → UNIT Treasury
├── 0.50 USDU → Token Treasury
├── 0.50 USDU → Liquidity Pool
└── 0.50 USDU → Vault
Withdrawal Fee Breakdown (1%)
| Recipient | Share | Purpose |
|---|---|---|
| UNIT Treasury | 0.5% | Long-term network sustainability |
| Vault / Staking Workers | 0.5% | Compensates processors and verifiers |
Why This Model Works
✅ Free Core Actions
Transfers, staking, and bond staking are completely free — keeping essential operations accessible to everyone.
✅ Transparent & Predictable
Flat percentage fees with no hidden costs. You always know what you'll pay and where it goes.
✅ Self-Reinforcing Growth
Every trade automatically:
- Strengthens the UNIT Treasury (floor price)
- Backs the traded token (token treasury)
- Improves trading conditions (liquidity)
- Rewards infrastructure (vaults)
✅ Flywheel Effect
As trading volume grows:
More trades → Treasury grows → Floor price rises → Confidence increases
↑ ↓
More users ← Better liquidity ← More LPs ← Higher rewards ←─┘
Token Supply Economics
| Token Type | Supply Model |
|---|---|
| UNITCOIN | Fixed cap — never increases |
| Wrapped Crypto | Elastic — minted on deposit, available for withdrawal |
| Stable Tokens | Elastic — minted on purchase, burned on redemption |
| Industry/City Tokens | Fixed cap — 10 million per token |
| User-Created Tokens | Fixed — set at creation, locked once tokens leave the bank |
Revenue Sustainability
Unit Network's model is designed for long-term sustainability:
- No inflationary emissions — UNITCOIN has a fixed supply
- Treasury growth — reserves accumulate with every transaction
- Over-collateralized stablecoins — backed by real assets, not algorithms
- Fee recycling — revenue flows back to participants, not to a central entity