Fees

The Community Funded Account (CFA) has two distinct statuses: paid and unpaid. To engage with the CFA and access rewards, users must ensure their CFA is in a paid state. Failure to maintain a paid status will restrict users from accessing their distributions.

The fees for maintaining a paid state are determined by the number of units held in the CFA. The greater the number of units, the higher the fees. The length of time that the CFA has been in a paid state also affects the fees. If the CFA is in a paid status, it indicates that the operational time is positive, enabling users to interact with the CFA without incurring additional fees. Conversely, an unpaid status means that the operational time is negative, indicating that the user has not paid their fees on time.

Users should be aware that if they fail to pay their fees for more than 90 days, their CFA will expire. However, users who participated in the initial pre-distribution of units in September 2022 are exempt from this rule.

Users have the option to pay their fees in advance for up to 40 months, equivalent to approximately 3 years and 3 months. However, not all users have the ability to pay for the full 40 months due to the moving cap system, which is based on the user's unit ownership relative to the total unit cap. The moving cap is calculated by dividing the user's units by the total unit cap and multiplying the result by 100 to determine the percentage of unit ownership.

For every 10% of unit ownership, the user can pay an additional 4 months in advance. For example:

• The current unit cap is 40 and a user holds 3 units, they can pay in advance for up to 4 months. If they hold 9 units, they can pay in advance for up to 12 months.

• The user holds 40 active units and 1 inactive unit, they can pay in advance for up to 40 months.

If the unit cap is increased to 80, the calculation will change for each user based on their unit amount. It's important to note that these calculations are based on the current epoch of the protocol and will change accordingly in the future due to the protocol halvings.