Proposal - reduce the exit fee (inb4, reduce doesn't mean turn off)

Ok, so I’ve mentioned this already in other places but I didn’t know about this one and I think this one might be best so I will post it also here, although I can’t believe myself that I am doing this because I don’t see much hopes of understanding my point (my previous attemps showed me that) and btw I have no financial benefit in here since I am not holding DODO, so I am potentially just wasting my time here :upside_down_face:

Anyways, in short, as you’ve might noticed it’s about the exit fee on stacking the DODO for vDODO and my feeling and calculations that it’s much too high and it’s not good for the project, for the price over all. Further in this topic I will try to explain my point, tho I am just a simple guy, so I am not sure how clear the outcome would be.

Inb4 by all of this I am not saying that the current price sleeping is due to this high exit fee, but rather that it’s most probably taking some important role in this.

As far as my understanding goes locking the token, stacking = better price stability, better price over all, etc.
Currently we have - in my view - only 2000+ stakers.
Current APY is ~150% = 0,41% daily
Current exit fee is ~7% = 7 divided by 0,41 = 17.
It takes 17 days to be just on 0 with the current exit fee, probably even more if we count that the exit fee is deducted from the whole vDODO so also the one we gained from stacking.
The first though that comes to my mind seeing such a number is the question of - who on earth would risk so much, for so little, especially in such fast and volatile market as crypto is.

Now, I don’t want to sound like bragging or something, but describing some situation is the only way I can make my point more stronger.
I have a friend who I perceive as one of the smartest guy I’ve ever met.
He is in crypto since many years + he studied math and seems to have quite a skill in understanding the most difficulties topics, including market, logic, math, etc. He looks after one website about the crypto.
I’ve asked him about what he thinks about my thoughts on DODO, exit fee, etc, and he basically confirmed what I also thought.
The exit fee is horrendously high in his understanding and he can’t imagine why would anyone would like to stake the dodo there, with such high risk, especially taking into consideration how many other projects are out there and what benefits they offer and without so crazy vision of punishment.

I did also some digging on telegram and I’ve noticed that I was not alone in my feeling, and there was some number of voices that said the same, that they would invest in dodo and would stake if this not high exit fee.

I’ve also heard some - short sighted in my understanding - replies, that it’s good that this exit fee is so high, because then there could be much more people stacking and this would lower the APY for that person.
I think it’s short sighted because yes, that particular person would have higher APY, but what is the use of this APY if the price is stable at best, and from just logic it could go up much faster up if there would be more people stacking and interested in stacking and therefore in wider perspective everyone would benefit more, even this guy with lower APYs, because it the mean time the DODO price would recompense it much more.

I don’t have exact numbers, because I am not a math guy and I haven’t asked my friend for any numbers either, we can figure it out later if we would find more approval for this, but initially I see reducing the exit fee by half is like minimum. 1/4 also not bad imho.
1/4 would still mean ~5 days with the current APY at middle exit fee, and it could easily go double this time, because the time increases with the APY dropping, and APY is dropping with more people stacking.
5-10 days in crypto market is huge and I think even 2-3 days is very safety mechanism for the price stabilisation which is the whole point of this exit fee I guess.

I haven’t seen many projects having either so high or any exit fees and somehow they manage to have better price stability and price over-all.
I also hope that this high exit fee is not mainly for the purpose of trying to keep alive the already dying project for as long as possible.

Nothing has to be pre-determined forever and we can change things and I see it as a possible and probably wise move to increase the exit fee again in the future(if we would to decrease it now), when the crypto market would become more mature and stable.

I take into consideration that I might be all wrong on this whole topic, so if you have any opinion or other ideas, please share them also :slight_smile:


I totally agree with you. exit fees are very high. there is no such fee in any cryptocurrency project. where did you see to buy bitcoin, and then you have to pay a 7-15% commission to the exchange for its ability to sell, because it is profitable for everyone, so less bitcoin will be sold, and the rate will only grow. This is complete nonsense. the same pancake is minted for 130% and there is no exit fee. what is special about dodo? does the dodo give us some incredible benefits for minting them? is that there is no other? privileges, voting rights, additional bonuses? not. the dodo course was 8 yesterday. today 4. and tomorrow $ 0.10. seo dodo full bottom. they are not involved in project development. they don’t advertise. they don’t do anything to attract new investors. I think they just sold all their dodos while listing on binance.


Hello,thanks for your attention. :smiling_face_with_three_hearts: :smiling_face_with_three_hearts:
The “exit fee” in vDODO tokens will be immediately distributed to all remaining vDODO holders who haven’t exited. we will introduce a statistical measure called the DODO Loyalty Index (DLI) , defined to be (number of vDODO in circulation * 100) / DODO in circulation. Assuming everything else stays the same, when vDODO gets minted, the number of vDODO in circulation increases, the number DODO tokens in circulation decreases, and the DLI increases.

The exit fee structure is that the higher the DLI, the lower the exit fee rate:

  1. When the DLI is above 0.5, the exit fee is at its minimum of 5%.
  2. As DLI decreases, the exit fee rate increases.
  3. When the DLI is less than 0.1, the exit fee is at its maximum of 15%.

More specifically, the exit fee rate formula is:

  • If DLI > 0.5, exit fee rate = 0.05
  • If DLI < 0.1, exit fee rate = 0.15
  • If 0.1 < DLI < 0.5, exit fee rate = 0.175 - 0.25*x
  • Note that DLI cannot exceed 0.5, since no DODO would be available to be staked to mint vDODO tokens
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I’m not sure if you got my point.
I am totally aware about the details that you’ve provided here.
Among few things I am just saying that it seems that most people who see and calculate this exit fee would most probably think to themselves - why on earth I should stake here, while there are many other projects where I have similar APY and no any exit fee + the price is much bullish then dodo.
Ergo, it seems only someone totally blind or new to market would do that in such a case in my understanding. But maybe I am missing something.
People not stacking = people not interested that much in that project = double lose for DODO because less people stacking and less interest :wink:

the fee is to make sure people consider carefully before mint vdodo, and give benefits for long term holder.

some coins like dot, after withdraw, you need to wait 30 days before the coins are back to you wallet.

So each coin has different rules and people should do their homework before investing

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I think you also didn’t get my point. Probably I wasn’t stressing this well enough, that I am well aware about the things you’ve just mentioned.
One of the thing I was trying to point is that just from the logic stance, it seems that most people should be discouraged from the idea of stacking vDODO because of this risk that I’ve mentioned, that is especially so high since we are in crypto market which is much more volatile and fast, and also crypto market where if you compare every other deal seems just a much better deal then investing in DODO and I not even mention the stacking idea.
Anyways, because most people might be discouraged from stacking = less interest in stacking and the project itself. Yes, the idea was good, to protect the price volatility etc., but again, read the title, I am not against the exit fee, I think it’s much to high and it’s not making any good for the dodo price.
Also can you tell me, how your minds explains this mine story of my mentioned friend, top expert in crypto imho and math also, totally shared with me my mentioned opinion about too high fees and that it’s not doing any good for the dodo?

And yes, polka dot or some few other projects have some time locks, but even this 30 days time lock seems much better idea than having such high exit fee, and usually those projects are much serious and bigger projects and are about the blockchain, the ecosystems, and stacking makes the network more strong but in case of vdodo obviously it doesn’t do that.

I guess I see your point, how much would you propose? current min is 5%

Let me quote myself

I can also ask my mathematician friend if he has any idea, but I would prefer to bother him only knowing that DODO is interested in that and there are some chances for changes.

I am for the exit fee, and I’ll explain why. An issue with many DEXs is that people earn rewards from locked tokens, and then they dump them onto the market, especially when the APY is high. We do not want more dumping of tokens onto the market from locked tokens. If the exit fee is less, people will just take profit and sell quickly to make a quick buck, especially whales.

When you mint Dodo into vDodo, you are essentially removing your Dodo from circulation and that helps the price of Dodo. That’s what we want; we want less Dodo on the market so the price can thrive. Dumping tokens on the market is an issue most DEXs have, e.g. 1inch. The exit fee is needed to help Dodo thrive.

Here’s a solution: don’t mint Dodo into vDodo. You can’t have both: great membership benefits and low exit fees. You can stake your Dodo with their liquidity mining, you aren’t forced to be in vDodo. You are aware of what you’re getting into, so don’t go and complain afterwards.

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I would much rather have a high exit fee than have people going in just to have quick profits; to break even, then start to earn more and then dump onto the market after they’re done. They can do this either way, but I’d much rather have it be a longer period of time (essentially locking your assets) than it be a lesser period of time, as more people would have joined vDodo by then.

vDodo is balancing their liquidity mining rewards, as $DODO is taken out of circulating supply with vDodo. We want less tokens dumped onto the market from rewards.

If they do reduce the vDodo exit fee, then they should burn tokens.

In regards to your quote here, there’s more to vDodo than just an APY. And, above that, they have stated that it’s not limited to what they have stated the vDodo rewards are. In one post, they essentially confirmed that there’s going to be an airdrop to vDodo holders.

I see the issue here: people have gone into vDodo and regretted it. That’s the harsh reality.

I agree, there are options like you mentioned and people should consider carefully before take action. It is serious money, think twice, ask questions before doing anything.

If someone is not happy with the exit fee, please don’t mint vdodo.

Agreed. Small vDodo hodler and in it for the long haul. The exit fee serves as a fine call to commitment. :upside_down_face:


Dear GoddessNiq and @Jack and @Leviathan

I feel like there is never enough of stressing the things that I’ve been trying to stress.
Firstly, did you even read the topic name? Let me quote. "

[(inb4, reduce doesn’t mean turn off)

Secondly, did you even read what I wrote in this topic?
I made this topic not because I made a mistake of owning and stacking vDODO - let me quote myself again:

or that other people made that mistake and are complaining about their mistake, but rather that I liked the project at the beginning but found some potential flaws in the projects (which IMHO was confirmed by my mentioned friend, but also by quick investigation about others people sentiment about DODO stacking exit fee, and all that potentially harming DODO on the wider perspective).

The hypothesis is simple - the exit fee is so high, that it discourages most normal people(who can do the math and market analysis) from stacking = less interest in project over all.
Less interest in project = nothing good for the token price.

One could also say I guess that, that’s my whole point - why not making the exit fee much more attractive, so that more people would be encourage to stack, but the exit fee would still be on such levels that it would still protect the price.

And also and again, no one answered my question how it could be possible that my math and technology guru friend is also wrong on his statement about dodo exit fee.

I feel like there is never enough of stressing, which the replies in this topic showed so, again:

I hope you are right so apy will go up, but the fact is that more people mint vdodo everyday and apy is down every day.

If you hold vdodo, you can see that

Yep, I’ve also mentioned this before, which is obvious, that the more ppl stack, the lower the apy would go, but over all the apy drop would be a small thing comparing to the gains ppl could get from the price rise, due to higher interest of ppl into the project, due to more attractive stacking option.