Claim Fee Structure & Rewards Protocol

The PetroNad protocol implements a dynamic, multi-layered fee structure to manage token velocity and secure funding for growth initiatives. All fees are mandatory to execute a reward claim.

1. Dynamic Fee Mechanism

The total fee required to claim rewards is comprised of two distinct layers, both calculated based on the claimed $PETRO reward’s instantaneous $MON value and paid using the native $MON token.

Fee Type	Rate & Basis	Application
Service Fee	10% (Fixed Rate)	A mandatory operational fee collected in $MON to support protocol operations.
Time-Based Decaying Fee	30% 0% (Dynamic Tax)	An additional cost paid in $MON. The entirety of this fee (0% to 30%) is dedicated to deflationary token burning.

2. Time-Decay Schedule

This mechanism directly influences user behavior by linking the cost of claiming to the holding duration:

• Initial State: The Time-Based Decaying Fee starts at 30% immediately following every successful claim transaction.

• Decay Rate: The fee decreases linearly at a rate of 1% per hour.

• Fee Exemption: After waiting 30 consecutive hours (1 day and 6 hours), the fee reaches 0%. Users can then claim by paying only the 10% Service Fee.

• Reset Condition: The Time-Based Decaying Fee instantly resets to 30% upon every subsequent reward claim executed by the user.

3. Early Adopter Protocol (Phase 1 & 2)

A special exemption is provided to users who supported the project during the initial phases:

• Users who acquired their Genesis Field during Phase 1 or Phase 2 are granted a one-time waiver for the 30% Time-Based Decaying Fee on their very first claim.

• Following this initial transaction, these users become subject to the standard fee schedule.

4. Protocol Funding and Supply Generation

The claim process is utilized as the injection point for protocol funding, triggering the generation of new $PETRO tokens to support growth initiatives, independent of the user's earned reward:

• PTE System Funding: An additional 7.5% $PETRO is minted and directed to the Post-to-Earn system's operational budget.

• Referral System Funding: An additional 2.5% $PETRO is minted to fund the passive commission distributed to the corresponding referrer.

• Total Supply Generation: Every claim transaction results in the minting of 10% new $PETRO into the ecosystem supply.