Variable Transaction Fee

Transaction Fee Model

The core innovation of UNIPUMP is the variable transaction fee model. This fee replaces gas payments during the pre-migration phase and is designed to fluctuate in response to gas price movements on the Ethereum network.

How the Fee is Calculated

Instead gas fees, UNIPUMP applies a variable transaction fee based on the total volume of the transaction. This fee is calculated as a percentage (1%) of the total value of each trade. As gas prices fluctuate, the transaction fee adjusts to ensure that enough funds are accumulated for the token’s deployment to the Ethereum mainnet.

The formula for calculating the transaction fee is as follows:

$$TxFee=V_{tx}∗F_{var}$$

Where:

• V_transaction is the volume of each transaction (i.e., the total value of the trade).

• F_variable is the variable fee rate, initially set to 1%, but it can adjust based on network conditions.

How to Calculate F_variable

The variable fee rate, F_variable, is designed to adjust in response to fluctuations in Ethereum gas prices to ensure enough funds are accumulated for token deployment. Here's how it's calculated:

Gas Target and Fee Rate Adjustment

UNIPUMP determines the target gas fee needed for deployment (denoted as G_target). The variable fee rate, F_variable, fluctuates depending on how gas prices evolve over time.

Formula for F_variable

The variable fee rate is calculated using this formula:

$$F_{var}=(G_{target}−G_{acc})/V_{exp}$$

Where:

• F_variable is the variable fee rate, initially set to 1%.

• G_target is the expected gas fee required

• G_acc is the gas fee accumulated

• V_exp is the expected volume.