The Business Side of YapBay
Let’s talk about fees and what they pay for. Currently, YapBay charges no fees. However, that is almost certainly going to change in the near future. Here’s why, why fees are compatible with YapBay’s goal of being a public good and how you as a YapBay trader will benefit from them.
Why Fees
YapBay will, at some point in the future to be determined, charge a 1% fee to cover operational costs, fuel growth and empower our community.
YapBay is a marketplace with a solo founder. This is not usually what VCs want to fund. The vision for YapBay, in any case, is not to give away large token allocations in the future to VCs. We want you, the trader, to have those tokens. In fact, we want you to own this protocol and network eventually, so you can be incentivized to help grow it and reap the full rewards of your contributions.
So, it’s not about profit. It’s about growth.
Where Fees Go
The proceeds of the eventual 1% fee will be allocated equally into two areas:
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The Referral Program: Rewards users who bring new traders into the network, helping us grow and reach more underserved communities. This program will be fleshed out soon. Rewards will ideally be paid as part of trading transactions or perhaps on a daily basis in their own transactions. The idea is to keep them decentralized, immediate and transparent.
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The Community Treasury: Token holders will at some point in the future vote on how to use these funds. Whether it’s building new features, expanding to new regions or supporting combo remittances, the treasury is your tool to shape YapBay’s future.
Gaslessness
It’s likely that early on, once it has some value, the community treasury will be managed by the team and will help subsidize chain transaction fees so that all trades and remittances can be gasless. This will reduce your costs of on-ramping, off-ramping and executing remittances.
Token
Yes, this plan assumes a token. There may or may not be a token sale. Ideally, tokens would solely be rewarded based on on-chain activity. This remains to be determined and your thoughts on it are welcome.
Fees + Public Good = No Conflict
Public goods in the crypto world aren’t always free. Take Uniswap, for example. It charges a 0.3% fee on trades to sustain its platform, yet it’s still a cornerstone of DeFi. Why? Because it provides open access, transparency and community value. YapBay is no different.
Precedents: Fees in Crypto Public Goods
Charging fees to sustain public goods isn’t new. Here are a few examples:
- Uniswap: Charges 0.3% on trades to reward liquidity providers and keep the platform liquid (Uniswap Docs, 2023).
- Gitcoin: Supports projects that charge fees if they align with community needs and are transparent (Gitcoin Blog, 2023).
- Octant: Funds public goods with fee-based models, as long as fees are reinvested for growth (Inside Octant, 2023).
Fees can coexist with public goods, as long as they’re used to benefit the community. At YapBay, we’re following the same playbook.
Challenges: The Fee Debate
There’s some debate around fees in public goods. Some argue that public goods should be free, but in reality, sustainability matters. Without fees, decentralized projects may not be able to scale. At YapBay, we’re not just charging a fee, we’re reinvesting it into the ecosystem. Our community governance model will ensure that every cent is used to make YapBay better, more inclusive and more impactful.
And let’s be real: TradFi charges way more. The global average for remittances is 6.2% (World Bank, 2023). Our 1% fee is a fraction of that and it’s reinvested into the community, not pocketed.
Conclusion: A Small Fee, A Big Impact
By keeping our fee at just 1%, YapBay remains one of the most cost-effective marketplaces, funding growth and rewarding community contributions. Every cent collected is transparently reinvested – powering our referral rewards, subsidizing gas for seamless trades and seeding the community treasury that you’ll govern. You’ll feel these benefits, whether it’s lower costs, instant token incentives or a say in the platform’s future.
This modest fee isn’t just about covering costs. It’s the bedrock of a self-sustaining ecosystem built for you. As YapBay thrives, so does your stake. We’re steadfast in our public-good ethos: open access, transparent governance and community-led innovation.
Please join our Telegram community to offer your feedback and ideas on these topics.
Citations
- Uniswap Docs. (2023). Fees.
- World Bank. (2023). Remittance Prices Worldwide.
- Gitcoin Blog. (2023). Seeking a New Kind of Public Good.
- Inside Octant. (2023). Funding Public Goods Through Innovative Community Decision-Making.
- City AM. (2020). Crypto Guide to Using Uniswap.