1. How is the net fees of Tokenlon protocol calculated?
Tokenlon adopts a design that the relayers can pay the Ethereum miner fee on behalf of the user to improve the user experience. So the fees collected by Tokenlon include the miner fee paid by the relaysers on behalf of the traders (the fees paid will be reimbursed by the treasury first). From this we can see:
Tokenlon net fees = Tokenlon fees collected - the miner fees paid by relayers
Both the fees captured by the Tokenlon 5.0 protocol and the miner fee paid by the relayers can be viewed on this dashboard.
2. How much net fees will be used by Tokenlon for LON buyback?
All the net fees, except imBTC collected, will be used to buy back LON. imBTC collected will be used for distributing earnings to imBTC holders as Tokenlon 4.0 defined.
3. On which trading platform does Tokenlon buyback LON?
Tokenlon will buy back LON on the open market, such as Uniswap, SushiSwap, etc. Buybacks are transparent and verifiable on the blockchain.
4. Who can initiate LON buyback?
The LON buyback is open to the community. Anyone can initiate a buyback by calling the buyback contract. The entire process is open, transparent, and verifiable on the blockchain.
5. What costs do users have to pay for LON buyback? What if the buyback fails?
Each buyback is carried out on the Ethereum network, therefore a miner fee is required to initiate a LON buyback. If the buyback fails due to unforeseen reasons, the buyback can be initiated again.
6. Why should LON buyback be carried out in batches?
To make the LON buyback orderly and organic, and avoid direct impact on the market, the LON buyback can only be carried out in batches. There is an upper limit on the number of LON tokens that are bought back at a time, and there are intervals between buybacks. Currently, the buyback interval for each token is 4 hours.
7. What is the transaction size limit for each buyback?
Tokenlon fees are collected in multiple tokens, and LON buyback can only be enabled if that token meets the liquidity requirement. To make the LON buyback orderly and organic, and avoid direct impact on the market, the LON buyback is carried out in batches, there is an upper limit on the number of LON tokens that are bought back at a time. Therefore, each buyback will set the upper and lower limits of the buyback quantity according to the current market conditions. You can check the transaction limit of each token buyback on the LON buyback page.
8. Where did the LON bought back from the market go?
The LON bought-back will be transferred to the treasury and staking reward pool. Among them, 40% LON is allocated to treasury, which is controlled by the community through governance, and the remaining 60% LON is used for staking rewards.
If you run into any questions about LON trade mining, you are welcome to join our Discord group and chat with us.