Fees

Fees in sub2 consist of two parts: protocol fee and processing fee.

Protocol fee

The protocol fee is a fixed fee which is applied to all payments with sub2. Currently, the fee is 0.2% and is taken in the token that is sent. The fee goes to the protocol treasury and is taken on the recipient side, meaning that the recipient will receive 99.8% of the amount specified in the subscription. The protocol fee can be adjusted by a governmental vote within the sub2 DAO in the future.

Processing fee

The processing fee goes to any processor calling processPayment on the due subscription as a financial incentivization to keep the subscription alive. The maximum processing fee that can be taken is set upon creating the subscription. The exact amount which is transferred to the processor depends on when in the fee auction processPayment is called (learn more here). The processing fee can be paid in any ERC-20 token, thus separating payment and fee. This enables subscriptions with payments in any ERC-20 tokens to be reliably processed, given that the fee token has economic value.