The VIP Fee Discount Program is now live on the Injective mainnet. This will be the first fully decentralized VIP fee Discount Program in the entire crypto industry!
The VIP Fees Program
Governance Proposal #69 was voted on by the community in order to enact the fee program on chain.
The Canonical Chain upgrade last week included a modular architecture that could host an on-chain Fee Discount Program. In essence, the Injective VIP Fee Discount Program is the first ever fully on-chain fee discount program rewarding traders and market makers who make a long-term commitment to Injective Protocol.
The program provides network participants with trading fee discounts based on their Tier which is determined by the trailing 30-day trading fee contribution as well as staked INJ amount.
Staking and fees generated are both vital for the growth and security of the protocol. This is exactly why these two parameters were selected for determining the fee tiers. Users are thus incentivized to contribute to the protocol via both staking and fee generation on the exchange in order to earn the lower fee tiers which can be quite lucrative especially for high volume or institutional traders.
The program is designed to enable everyday users to attain the first few ranks rather quickly. The basic requirement to achieve Tier 1 to stake 1 or more INJ which already provides traders with a 10% discount across both maker and taker fees. Of course, the tiers become increasingly harder to achieve in order to incentivize larger traders, holders and institutions to contribute more to the protocol.
The initial idea of the program was inspired by our friends and backers at Binance. However, it was iterated upon further by the larger Injective community through both discussions in the governance forum and other channels such as Discord.
The fully on-chain VIP Fee Program brings Injective one step closer to building the most powerful exchange infrastructure in the industry today while also incentivizing volume growth and overall protocol adoption.
Injective is a lightning fast interoperable layer one blockchain optimized for building the premier Web3 finance applications. Injective provides developers with powerful plug-and-play modules for creating unmatched dApps. INJ is the native asset that powers Injective and its rapidly growing ecosystem. Injective is incubated by Binance and is backed by prominent investors such as Jump Crypto, Pantera and Mark Cuban.