Demand Based Fees

The $GRAIL DBF mechanism introduces a dynamic, self-adjusting fee system that evolves with real market behavior.

Fixed fees have always failed both sides of the market. Too high, and they choke liquidity. Too low, and they leave no sustainable growth.

DBF fixes this flaw by building a living economy, one that adapts its fees to demand in real time. When trading volume and market capitalization rise, DBF scales up to capture value for the Vault and fuel buybacks. When markets quiet down, it automatically lowers friction, opening the door for new participants and steady organic inflow.

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The Problem with Static Fees

Every major protocol faces the same structural decay:

• High fixed fees extract too much, eventually pushing traders away and freezing liquidity.

• Low fixed fees underfund the system, starving future growth and value retention of a project.

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The DBF Solution

DBF (Demand-Based Fees) replaces rigidity with true adaptability. DBF v4 smart contract continues to analyze transactions by factoring in volume, market cap, and time to adjust fees dynamically.

• When volume and market cap surge, DBF scales fees up to maximize value capture.

• When momentum cools, DBF scales fees down to restore accessibility and encourage new activity.

Unlike legacy tokens, DBF reacts to the market instead of fighting it creating a balanced feedback loop between liquidity, participation, and value creation.

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DBF Allocation Ratio

While DBF adjusts the total fee percentage in real time, the internal allocation ratio never changes. This ensures consistent and predictable value flow:

• 75% → Vault Growth Pool (used to acquire new Pokémon grails)

• 25% → Buyback & Burn Reserve (reduces circulating supply)

This constant ratio maintains equilibrium between Vault expansion and token deflation, regardless of market conditions.

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Why DBF Matters

Low-demand phases mean cheaper entry for new participants, turning quiet markets into opportunity windows instead of stagnation.

During high demand, DBF increases fee flow, channeling more value directly into Vault Growth and Buyback & Burn — accelerating both TVL expansion and deflation.

• Collectors / Retail: Lower fees in calmer markets make grail exposure more accessible.

• Traders: Adaptive fees prevent over-taxation, maintaining a fair and liquid market.

• Long-Term Holders: As volume and demand rise, buybacks and burns intensify, increasing Vault value per token.

DBF becomes a foundational redesign of how token economies self-regulate. By integrating real-time market behavior into fee logic, $GRAIL becomes the first collectible-backed ecosystem to evolve with demand instead of against it.