There are several fees used in the Astra DAO ecosystem: the performance fee, early exit fee, Astra ecosystem fee, and slashing Fee.
- Performance fee - Performance fees are automatically collected upon iToken redemption if the investor's ROI exceeds 0. If an investor withdraws only a portion of iTokens held, performance fees will automatically adjust to the ratio of tokens withdrawn to total tokens held. The performance fee is currently fixed at 20% of the individual investor’s profit but can be adjusted by the DAO governance vote.
- Early exit fee - Early exit fees prevent or discourage investors from redeeming index participation units shortly after buying them. The early exit fee is designed to be high at the beginning (2%) and gradually decrease (1/182 of the initial fee daily). After six months of consecutive holding, the exit fee is equal to zero. Users can exempt themselves from early exit fees by converting them to ASTRADAO tokens with six months of lockup.
- Astra ecosystem fee - Index/pool creators keep 80% of performance and early exit fees, and 20% is transferred to Astra treasury as an Astra ecosystem fee. 80% of ecosystem fees are redistributed back to Astra DAO token stakers, while 20% goes to the treasury.
- Slashing Fee - The slashing fee will start from 90% on the 1st day of the Astra staking program and decrease 1% a day over 90 days until achieving 0%. If a user stakes a new ASTRADAO before the 90th day, then the slashing fee will become a weighted average of the old and new ASTRADAO with respect to the amount and days staked. The slashing fee collected is redistributed back to stakers.