Understanding BZE’s DEX Trading Fee Mechanism

beezee
beezee Community
Published in
3 min readAug 4, 2024

We’re excited to share details about our decentralized exchange (DEX) and how our trading fees contribute to maintaining the stability of our ecosystem. A crucial aspect of our platform is that all trading fees collected are added to the next burning event, helping to manage the total supply of BZE. Let’s first define two important roles in the trading process: the Market Maker and the Market Taker.

Market Maker

A market maker is a participant who provides liquidity to the market. They do this by placing buy or sell orders at specific prices, which aren’t immediately filled. These orders sit on the order book, waiting for other traders to match them. By setting these orders, market makers help create a smoother trading experience, offering more options for buyers and sellers.

Market Taker

In contrast, a market taker is someone who buys or sells an asset at the current market price. They place orders that are instantly matched with existing orders on the market, effectively “taking” the available orders. This role is crucial for the immediate execution of trades, making the market more dynamic and responsive.

Trading Fees and Their Role in Managing Supply

With these roles in mind, let’s explore the fees associated with trading on the BZE blockchain:

  • Market Maker Fee: 0.001 BZE
  • Market Taker Fee: 0.1 BZE

Key Points to Note:

  • Fee Capture Timing: Fees are captured at the time of order placement. This means that whether the order is filled immediately or partially, the respective fee applies. Market takers pay a fee of 0.1 BZE for immediate execution, while market makers, who place orders and wait for them to be filled, incur a smaller fee of 0.001 BZE.
  • Non-refundable Fees: If an order is canceled, the fee is not refunded. This policy helps maintain network integrity by discouraging spam and unnecessary transactions.
  • Partial Fills: If an order is partially filled, the trader pays only the market taker fee.
  • Additional Network Fees: Trading fees are separate from the transaction fees required by the network for processing transactions on the blockchain.

Importantly, all trading fees collected are set aside for our next burning event. This process helps manage the overall supply of BZE, contributing to the stability of the ecosystem and helping to counteract inflation.

Recent Market Activity and Burning Impact

Since the launch of the OSMO/BZE market pair, we have observed a trading volume of 2,493.145677 OSMO, approximately equivalent to $878.77. This activity has resulted in over 70 BZE being earmarked for burning in the upcoming event. This reduction in supply is a proactive measure to maintain the balance and sustainability of our token economy.

The practice of burning tokens serves as a mechanism to help manage the circulating supply of BZE, ensuring that we can continue to provide a stable and robust ecosystem for all participants.

Looking Ahead

As trading volumes grow and additional market pairs become available, the amount of BZE burned will increase, further supporting our efforts to maintain a balanced supply. This initiative is just one part of BZE’s broader strategy to deliver reliable and accessible services while preserving the network’s health.

Please note that these fees are subject to change if trading costs become too high compared to USD.

Thank you for being part of the BZE community, and stay tuned for more updates! 💪

First time hearing about us? Visit our website to learn more about BZE.

Feel free to engage in a discussion with us on any of our communication channels: Twitter, Medium Publication, Discord or Telegram.

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beezee Community
beezee Community

Published in beezee Community

Cutting Edge Cryptocurrency. Ultra fast, secure and low cost blockchain aiming to provide a complete digital ecosystem.

beezee
beezee

Written by beezee

Cutting Edge Cryptocurrency. Ultra fast, secure and low cost blockchain

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