Token Types
The Something Cool platform supports two distinct token types, each with unique characteristics and fee structures. This page explains the differences between these token types and their use cases.
1. Zero Fee Tokens
Zero fee tokens are designed for projects that prioritize frictionless trading without any additional token mechanics.
Characteristics
No Fees: After migration from SC Bonding Curve to CoolDEX, trades incur zero fees beyond standard network fees
Simplified Mechanics: No special tokenomics involving burning or rewards distribution
Standard Trading Experience: Functions like any standard token on a DEX
Configuration
When creating a token on SC Bonding Curve, set:
after_migration_fee: 0Other fee distribution parameters are randomly set to equal 100% or 10000 bps
Use Cases
Utility Tokens: Tokens meant primarily for utility within a platform
Governance Tokens: Tokens used primarily for voting rights
Stable Assets: Tokens that aim to maintain a stable value
High-Volume Trading: Projects that want to encourage maximum trading activity
2. Community Contribution Tokens
Community contribution tokens incorporate a fee structure that can create deflationary pressure and reward community participants.
Characteristics
Customizable Fee Rate: Can be set to 0.25%, 0.5%, 1%, 2%, or 5% of each swap
Deflationary Mechanism: Option to burn a portion of fees automatically
Reward Distribution: Portions can be allocated to token holders and LP providers
Platform Support: Small percentage (10% of collected fees) supports platform development
Configuration
When creating a token on SC Bonding Curve, set:
after_migration_fee: One of the allowed values (25, 50, 100, 200, or 500 basis points)after_migration_burn_bp: Percentage of fees allocated to burning (in basis points)after_migration_holders_bp: Percentage of fees allocated to token holders (in basis points)after_migration_lp_bp: Percentage of fees allocated to liquidity providers (in basis points)
The sum of burn_bp, holders_bp, and lp_bp must equal 10000 (100%).
Fee Distribution Example
For a token with:
5% swap fee
50% burn rate
30% holder rewards
20% LP rewards
The distribution of a 100 TOKEN fee would be:
10 TOKEN to platform (10% of fee)
45 TOKEN burned (50% of remaining 90%)
27 TOKEN to holders (30% of remaining 90%)
18 TOKEN to LP providers (20% of remaining 90%)
Use Cases
Deflationary Tokens: Projects aiming to reduce supply over time
Community-Focused Projects: Projects that want to reward their community
Long-Term Holders: Projects encouraging holding rather than trading
Decentralized Governance: Projects that want to increase the value of governance tokens
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