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: 0

• Other 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