I’m looking to see if there are any standards or proposals around a token that upon sending pays a fee to another address? An example would be a token that automatically pays 1% of the total transaction amount to a predetermined contract or wallet.
I did some searching through the EIP standards but didn’t see much.
I’m not aware of any standard for this type of fee collection though.
Worth pointing out that it’s trivial to circumvent this type of fee, simply by wrapping the token. If the token gains any kind of traction, there will almost certainly emerge a market for a wrapped version of this token that circumvents the fee.
Very new to this platform, so sorry if I just double messaged you. Here’s what I replied:
“It breaks the assumptions of ERC20 users”
Yes, I agree. My preference would be that your wallet would let you know what exactly you’re paying up front before the fee is sent. We don’t have anything that resembles this today, which is why a standard on how fees are paid would be a logical first step to allow for transparency.
“And, 1% is a lot”
The fee, of course, is arbitrary. It can be a flat fee on all transactions. It can be progressive, regressive or flat. But I have to imagine if you’re using this token (given how many choices you have in payment), you would only be using this token if you had some reason to want to support the community these funds are being distributed to.
@Bschuster3434 I don’t think you understood one part of my reply:
I will wrap your token.
You cannot charge a fee on transfer because I don’t have to use your contract directly. I can deposit it into a wrapper token contract and use that instead. Fees on transfer therefore cannot be your business model.