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7. Unique Fee Distribution Model
On the majority of existing social media platforms, the fee distribution model is purely oriented towards the company. With that said, you probably know the fact that it’s all about the company and corporation benefiting from the fact that users spend hours (or dozens of hours) on the platform.
Is it the only solution? Of course not. Candao brings a unique fee distribution model to the table. The fee percentage will depend on the type of transaction on the platform.
How is such a model unique? The Candao model is about returning the majority of the fee back to the Creator to incentivize creating inside the protocol. The rest of the fee will be used to deliver positive things to the whole ecosystem.
Let’s take an example of the transaction between a Web3 company & a freelancer.
- Buy-backing CDO from the market & allocating them to staking rewards
- Fund the Candao operations
Binance, the largest centralized exchange in the space, has a similar model with its BNB token. They also use the fees to give back to the ecosystem, but they do it via buy-backs & burns. Instead, Candao buys back & allocates those funds to the community members, to accelerate the overall growth of the ecosystem.