# Where a fee goes

> About a dollar on a $100 purchase, split among rewards, operations and a fund that pays for work.

Gavin Robert McGowen · interstellarblends.com. This site describes a patent application. It offers no token, security or investment.

Canonical: https://velocityprosperity.com/fees/

## The scalpel

- On a purchase of about $100, the specification’s example fee is “approximately one dollar”.
- FIG. 4 splits it as shares of the purchase: 0.5% to user rewards, 0.25% to system operations and 0.25% to the economic-stimulation fund, or 50¢, 25¢ and 25¢ on $100.
- FIG. 26 sends “approximately fifty percent” of fees to rewards and to the fund, and the fund sends a tenth to a liquidity assurance pool and the rest to societal initiatives.
- The fee moves only inside “an authorized range”, in the example “from approximately 0.5% to approximately 2%”, held there by a clamp that works “independently of an output produced by deep Q-network 1200”.

## In plain words

The specification works through two examples. Both are illustrations, and the shares in each can be changed. Either way, the fee stays inside an authorized range, in the example between about half a percent and two percent of a purchase.

FIG. 4 · one purchase

## A $100 purchase pays a fee of about $1

*Of the $1 fee: 50 cents to user rewards, 25 cents to system operations, 25 cents to the economic-stimulation fund*

- User rewards 50¢
- System operations 25¢
- Economic-stimulation fund 25¢

> “As an illustrative, non-limiting example, a transaction amount of approximately one hundred dollars may result in a calculated transaction fee of approximately one percent, corresponding to approximately one dollar.”
> “The illustrative percentages and dollar amounts described above are examples and are not required limitations.”
> — Specification · description of FIG. 4

FIG. 26 · a pool of fees

## Half to rewards, half to the fund, and the fund splits again

*Fees: 50 percent to rewards operations, 50 percent to the economic-stimulation fund*

*The fund's half: 10 percent to the liquidity assurance pool, 90 percent to societal initiatives*

The fund’s half, split 10 / 90

- Rewards operations $50
- Liquidity assurance pool $5
- Societal initiatives $45

Per $100 of fees.

> “A first share and a second share allocated by liquidity-pool funding mechanism 3700 may, for example, each equal approximately fifty percent of transaction fees 3702 in one illustrative configuration.”
> “A third share allocated to liquidity assurance pool 3706 may, for example, equal approximately ten percent of an amount received by economic-stimulation fund 400 in one illustrative configuration.”
> “A fourth share allocated to societal initiatives 3708 may, for example, equal approximately ninety percent of an amount received by economic-stimulation fund 400 in the same illustrative configuration.”
> “Societal initiatives 3708 may fund a job-creation program using an amount received from economic-stimulation fund 400.”
> — Specification · description of FIG. 26

## The fee stays inside a set range

*Scale from 0 to 2.5 percent; in the example the authorized band runs from 0.5 to 2 percent; the FIG. 4 example sits at 1 percent*

Authorized range, in the example FIG. 4 example, about 1%

> “The authorized range applied to dynamic fee 1300 may, for example, extend from approximately 0.5% to approximately 2% of a transaction amount.”
> “Clamping dynamic fee 1300 independently of an output produced by deep Q-network 1200 may reduce a likelihood that an anomalous model output produces a fee value falling outside the authorized range.”
> — Specification · the dynamic fee

The question

## Where does a VP2.0 transaction fee go?

In the specification’s examples, to user rewards, system operations and an economic-stimulation fund (FIG. 4); or half to rewards and half to the fund, which sends a tenth to a liquidity assurance pool and the rest to societal initiatives (FIG. 26).

**The sources in full every quotation on this page, where it stands**

> “As an illustrative, non-limiting example, a transaction amount of approximately one hundred dollars may result in a calculated transaction fee of approximately one percent, corresponding to approximately one dollar.”
> — VP2.0 specification

[FIG. 4](https://velocityprosperity.com/drawings/#fig-4): “Fig. 4 is a flowchart depicting an example transaction-flow method for processing a value transfer and allocating a resulting transaction fee.”

How it is read FIG. 4 labels each share “0.5% FEE” or “0.25% FEE”: shares of the purchase, which add to the 1% fee; on $100 they are 50¢, 25¢ and 25¢.

[FIG. 26](https://velocityprosperity.com/drawings/#fig-26): “Fig. 26 is a block diagram depicting an example mechanism for allocating a collected transaction fee among multiple funding destinations.”

> “A first share and a second share allocated by liquidity-pool funding mechanism 3700 may, for example, each equal approximately fifty percent of transaction fees 3702 in one illustrative configuration.”
> — VP2.0 specification

> “A third share allocated to liquidity assurance pool 3706 may, for example, equal approximately ten percent of an amount received by economic-stimulation fund 400 in one illustrative configuration.”
> — VP2.0 specification

> “A fourth share allocated to societal initiatives 3708 may, for example, equal approximately ninety percent of an amount received by economic-stimulation fund 400 in the same illustrative configuration.”
> — VP2.0 specification

> “Bounded-transition processing module 270, described with reference to FIG. 2, may clamp a calculated value of dynamic fee 1300 to an authorized range.”
> — VP2.0 specification

> “The authorized range applied to dynamic fee 1300 may, for example, extend from approximately 0.5% to approximately 2% of a transaction amount.”
> — VP2.0 specification

> “Clamping dynamic fee 1300 independently of an output produced by deep Q-network 1200 may reduce a likelihood that an anomalous model output produces a fee value falling outside the authorized range.”
> — VP2.0 specification

> “The illustrative percentages and dollar amounts described above are examples and are not required limitations.”
> — VP2.0 specification