Actions

List of interactions a user can do with a CFA

The following are the four ways in which a CFA can be interacted with:

  1. Unit Purchase: This involves increasing the number of units in the user's CFA. The more units, the higher the distribution from the CFA. To make a unit purchase, the user must pay in community tokens. Currently, the cost is 10 RADX, of which 9.75 are directed towards the distribution pool and 0.25 towards the liquidity pool, which is divided between RADX and WAVAX, with 0.125 kept in RADX and 0.125 sold for WAVAX. The units are then automatically added to the main DEX. The first unit purchase will add a month worth of fees. Subsequent unit purchases do not add up fee time. (Unless specific offers where buying more than x amount, gives you an additional month)

  2. Claim CFA: This allows the user to receive the distribution from the CFA. A 24-hour waiting period must be observed before making a claim. The claim transfers tokens from the distribution pool to the user's individual wallet. After purchasing the first unit, the user must wait 24 hours before claiming the first distribution.

  3. Compound Units: This involves using unclaimed distributions to purchase more units, making it easier for users to grow with the protocol without having to receive tokens in their wallet and complete additional transactions. It may also be tax-beneficial in some countries, as the user interacts with the protocol and grows their future distributions without receiving tokens in their wallet.

  4. Pay CFA Fees: This involves paying the fees that the CFA requires to operate. Paying fees allows the user to continue operating with the CFA, adds value to the community and treasury, and enables further development towards a more sustainable protocol.

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