> For the complete documentation index, see [llms.txt](https://coinbox.gitbook.io/ddkv2/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://coinbox.gitbook.io/ddkv2/fee-structure.md). # Fee Structure The product token is designed to offer investors a unique value proposition, with 2% of all transaction fees generated on the platform being distributed as reflection rewards to token holders. This means that holders will receive a portion of the transaction fees proportionate to their holdings, incentivizing long-term investment and increasing the value of the token over time. In addition, 2% of the transaction fees will be used to support liquidity pools, ensuring that there is always sufficient liquidity on the platform to facilitate transactions. Finally, 1% of the transaction fees will be reserved for a buyback and burn program, which will use these funds to purchase and permanently remove tokens from circulation. This will reduce the overall supply of tokens over time, increasing scarcity and potentially boosting the value of the token. With its innovative reward structure and commitment to liquidity and scarcity, the product token offers investors a unique opportunity to participate in the growth and development of the platform while also potentially earning significant returns on their investment. The following schedule is in place: * **Transaction fee**: **5%** All 5% of fees generated will be automatically distributed using a smart contract according to the following allocation: * **2% Reflection** * Reflection rewards in the context of cryptocurrency tokens refer to a mechanism where token holders receive a portion of the transaction fees generated on the blockchain network by simply holding 10,000 tokens in their wallets. This reward is often proportional to the number of tokens held and is automatically distributed to the holders' wallets without the need for any additional action or participation. The idea behind reflection rewards is to incentivize token holders to maintain their holdings over the long term, and to create a steady source of passive income. Reflection rewards are a popular feature in many decentralized finance (DeFi) protocols and platforms. * **2% Support LP (Liquidity Pool)** * Specifically, 2% of the fees generated from transactions are converted into LP tokens, which are then used to support the liquidity of BDDK and EDDK on decentralized exchanges (DEXs). As part of this allocation method, a portion of the LP tokens are burned to reduce the total supply of the token. This approach supports the liquidity of BDDK and EDDK in DEXs, while also promoting long-term value and sustainability * **1% Allocated for BURN and Reserved for BUYBACK** * "1% allocated for burn and reserved for buyback" refers to a mechanism where 1% of the tokens generated are allocated for burning (permanently removing from circulation) or reserved for buyback. Burning tokens reduces the total supply of the token, which can increase the value of the remaining tokens in circulation. Buyback refers to the process of a project buying its own tokens from the market, which can also help to increase the value of the remaining tokens. By allocating a portion of the generated tokens for burning or buyback, the project can promote long-term value and sustainability for its token holders. Overall, this is a common feature in many cryptocurrency projects, and can help to incentivize long-term commitment from investors and users. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://coinbox.gitbook.io/ddkv2/fee-structure.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.