💸Revenue Model

As with any liquid staking protocol with a stake in a strong, emerging blockchain ecosystem, there is huge potential to develop a sustainable, revenue generating and profitable business model. In order to achieve this TaiNet has a number of tried and tested revenue models based on proven models from the ETH LST ecosystem.

1. yTAO Mint Fee: Users are charged a 1% minting fee when depositing their wTAO/TAO for yTAO. This fee is utilized to cover gas costs and ongoing upkeep and operational expenses.

2. yTAO Redemption Fee: Should a user wish to unstake their yTAO and convert it back to wTAO/ TAO they incur a 1% fee. This is typically favorable vs. paying trading fees and incurring any slippage on a DEX and enables the protocol to diver that revenue back into the growth of the ecosystem.

3. yTAO Yield Fee: The protocol takes a 10% fee on yield generated. Much like a VC takes a performance fee for optimizing returns, so does TaiNet take a fee that is diverted back into optimizing our AI algorithms and stay ahead of the competition, ensuring our users achieve best in class yields.

4. TAI Trading Fees: TAI operates with a 3/3 trading tax (3% tax on buys and sells). As the protocol fair launched with minimal funding, this ensures the protocol is able to operate and grow. This tax also ensures the requisite levels of decentralization and equitable access vs. behind closed doors VC raises.