Understanding Fee System

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PotLock will not be generating a token. This will be scaling strictly based on Fees.

This is to drive conversation around fee amount, max fee a Protocol (goes to DAO to distribute) can generate, Chefs, and Referrers who bring in donations and patrons to funding round.

What should be the protocol fee max?

• 10%
• What is normal for non-profit / crowdfunding platforms
  What should be max Chef ee?

What should be max referral fee for patrons?

What should be max referral fee for donors?

For more information https://docs.potlock.io/contracts/potfactory#fee-setting-and-payments

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Some insights on crowdfunding platforms

Fundly charges fees based on the scale of the fundraiser. Individual campaigns are charged 4.9% of the funds collected, plus 3% credit card fees. Campaigns that reach certain donation levels receive discounts on the fee percentage that Fundly charges. Campaign donations raised from $50,001 to $500,000 are charged 4.4%, donations raised from $500,001 to $1,000,000 are charged 3.9% and every donation raised over $1,000,000 is charged 2.9% [5]

Kickstarter: 5% platform fee, plus payment transaction fees between 3% and 5% (US).
Indiegogo: 5% platform fee, plus payment processing fees of 3% + $0.20 per pledge.
Patreon: 5% to 12% platform fee, depending on your chosen plan, plus payment processing fees.
SeedInvest: Varies depending on the amount raised.
StartEngine: 5% to 12% platform fee, plus payment processing fees.
Mightycause: 0% platform fee for nonprofits, 2% platform fee for personal fundraisers, plus payment processing fees.
GoFundMe: 0% platform fee for personal fundraisers, 2.9% + $0.30 per donation for charity fundraisers, plus payment processing fees.
It is important to note that some platforms have an all-or-nothing funding model, meaning that you only receive the money you raise if you reach your goal. Other platforms have a keep-it-all funding model, meaning that you keep all of the money you raise, even if you don't reach your goal.

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Here are some examples of how much money some of the top crowdfunding platforms brought in in 2020:

Kickstarter: $505 million
Indiegogo: $1.06 billion
Patreon: $2 billion
SeedInvest: $225 million
StartEngine: $185 million
Mightycause: $330 million
GoFundMe: $9.3 billion