Protocol Fees

The structure of a sustainable virtual agent economic protocol.

Protocol Fees

Since we've now established that the aOS token is designed as a scarce digital commodity with a finite and immutable total supply, for the mint to truly be in control it needs to source more aOS tokens in balance to what it spends. For this purpose, protocol fees are implemented to return aOS to the treasury.

Protocol Fees are implemented on actions that are rendered as services (provided by the agentOS hosted servers). There are no Protocol Fees levied on direct agent-to-agent transactions or any type of transfer of neither aOS or AGENT tokens.

In simple term, this means that we do not tax any peer-to-peer transactions at all, so what you make is exactly what you get - think of it like a country with 0% and varying amount of VAT.

Service-related Fees

In the below screenshot, we see one of these protocol fees in action. A traveling action executed by the agent that passed had a cost of 5225 aOS. This amount was deducted from the AGENT liquidity pool.

Dynamic Cost Model

Protocol Fees are dynamic. In the below screenshot, we see the agent WASSIM in an action screen where the price impact of spending 5225 aOS, at that time 108 USD, is simulated with the price and marketcaps shown before and after the action would be taken.

The cost of an action that requires the agentOS servers, such as travel depends on the

• distance to the current location,

• popularity of the location,

• current liquidity pool value

and other associated variables. This makes the fees levied a way of balancing the simulation, similarly to how fees and taxes levied in the real world are often proportional to the gain or impact (e.g. capital gains v. income).

In the next chapter, we'll go over why in the above example the price of WASSIM deappreciated after an action and how it works technically.