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Fee Design

Why 3.5%? How fees power deflation and the buyback mechanism.

Core Principle: Lock > Transfer

IFR is not a trading token. The model is based on:

Buy once
Lock once
Use benefits permanently

Transfers happen rarely — when buying, when locking, when unlocking. Not daily. That is why 3.5% is sustainable and intentional.

Fee Breakdown

Fee	Destination	Purpose
2.0%	Burn (sender side)	Permanent deflation
0.5%	Burn (recipient side)	Permanent deflation
1.0%	BuybackController	Protocol pool fee, routed to BuybackController (recoverable by Governance via `withdrawIFR`) following Governance proposal #21 (executed 5 October 2026, Mainnet block 26124660, TX 0x8de48b47…9ca26). Pool fees received before then are held by FeeRouterV1 (734,545.074097347 IFR as of block 26124660 (2026-10-05)); the contract has no direct withdrawal function, and Governance is reviewing options. Direct transfers can still change FeeRouterV1's balance; read it on Etherscan for the current value. See Buyback and burn contracts — status and access.
3.5%	Total	2.5% burned + 1% protocol pool fee to BuybackController

Hard cap: Total fees can never exceed 5% (500 bps). This is enforced directly by InfernoToken.setFeeRates(); governance can change the split but cannot exceed the cap.

Fee-Exempt Addresses

A transfer incurs no fee when the sender or the recipient is fee-exempt. The table lists every address among the checked protocol contracts, Safes and the Deployer for which feeExempt(address) returned true at block 26,065,893:

Address	Why Exempt?
IFRLock	Lock/Unlock must be fee-free (users get back exactly what they locked)
LiquidityReserve	Internal protocol transfers
BuybackVault	Buyback logic without loss
BurnReserve	Burn mechanism
PartnerVault	Fee-exempt protocol vault; seller rewards remain separately governance-gated and inactive
CommitmentVault	Voluntary lock vault — feeExempt since Proposal #11 (06.04.2026)
CommitmentVault V2 `0x8efae0C85ad6d44C731cAEDA1cBC275904Fc7c8F`	CV-01 repair vault for time-only locks — feeExempt since Proposal #17 executed (04.10.2026, block 26121846)
LendingVault	P2P lending vault — feeExempt since Proposal #12 (06.04.2026)
BuybackController `0x1e0547D50005A4Af66AbD5e6915ebfAA2d711F7c`	Receives native ETH fees from FeeRouter-routed swaps and, since Proposal #21 (05.10.2026), the 1% IFR pool fee; permissionless execution is trigger-, cooldown- and balance-dependent. IFR transfer-pool fees held by FeeRouterV1 are not forwarded automatically. Fee-exempt since 16.04.2026 (Proposal #13).
LP Token (IFR/WETH) `0xbE495E9c0d8cc2DCf95570cf95B63c4844dF31A0`	✅ feeExempt = TRUE since 08.06.2026 — Proposal #15 executed · Block 25271071. IFR tradeable on Uniswap without 3.5% swap fee.
FeeRouterV1	Protocol fee router; holds the IFR transfer-pool fees received until Proposal #21 (05.10.2026); the contract has no direct withdrawal function, and Governance is reviewing options
Vesting	Team vesting contract; releases are fee-free
BootstrapVaultV3	Finalized Bootstrap vault
BootstrapVault V1 (legacy)	Deprecated vault; exemption still set on-chain
Treasury Safe	3-of-5 Safe
Community Safe	3-of-5 Safe
Deployer EOA	Active, disclosed governance-controlled exception (re-enabled by executed Proposal #7)
DEX Router	Not fee-exempt. The IFR/WETH pair is the exempt transfer counterparty used by Uniswap V2 swaps. Also not exempt at block 26,065,893: Governance, BuilderRegistry and the LP Reserve Safe.

All exempt addresses are on-chain transparent and only changeable via Governance proposals with a 48-hour timelock.

✅ Bootstrap FINALIZED 05.06.2026 23:51 UTC — Block 25254575 — TX: 0x949848bd…
LP Token: 0xbE495E9c0d8cc2DCf95570cf95B63c4844dF31A0 — totalETHRaised: 0.030 ETH
Proposal #15 (setFeeExempt LP Token) EXECUTED 08.06.2026 ✅ — TX 0xd5a3bc95… · Block 25271071
Proposal #16 (setP0 CommitmentVault) EXECUTED 09.06.2026

Buyback and burn contracts — status and access

Three contracts are named “buyback” or “burn”. Only BuybackController is part of the active fee route. Values below are as of 5 October 2026 (Ethereum Mainnet block 26,128,255); open each address on Etherscan for the current state.

Two different burns. The standard 2.5% burn on a transfer between non-exempt addresses happens inside the IFR token and reduces totalSupply immediately; it does not pass through BurnReserve. BurnReserve only holds IFR that BuybackController has bought back, until burn() is called.

Contract	Role and status	Who controls what	Balance (as of 5 October 2026)
BuybackController `0x1e0547D5…711F7c`	Active. Receives the 1% IFR pool fee (since Proposal #21) and the ETH protocol fee of swaps routed through FeeRouterV1. `execute()` can be called by anyone once the 24-hour cooldown has passed and the ETH balance is at least `minTriggerAmount` (0.01 ETH): half of the ETH buys IFR that is sent to BurnReserve; the other half is meant for Uniswap V2 liquidity paired with IFR the controller already holds (LP tokens to `lpReceiver`, the Treasury Safe as of 5 October 2026). The LP half is conditional: if the controller holds no IFR, or if adding liquidity fails, that ETH also buys IFR for BurnReserve (`LiquidityFallback` event). A wiring entry does not mean that any buyback or LP addition has happened.	Owner: Governance (parameters, `withdrawETH`, `withdrawIFR`). Guardian: Deployer (pause and unpause only).	0 ETH, 0 IFR; `executionCount()` 0
BurnReserve `0xaA149613…6fCF`	Burn target of BuybackController. Holds bought-back IFR until it is burned. There is no withdrawal function, by design. Its balance alone says nothing about past buybacks; `totalBurned()` and BuybackController’s `executionCount()` record the history.	Owner: Governance. Guardian: Treasury Safe (since Proposal #20). Either can call `burn()` or `burnAll()`.	0 IFR; `totalBurned` 0
BuybackVault `0x670D293e…F812`	Legacy and dormant (activated May 2026, superseded by BuybackController). No fee is routed to it; it only receives ETH that someone sends to it directly, for example via `depositETH()`. It has no withdrawal function. It is not shown in the landing page distribution.	Owner: Governance (`executeBuyback` is owner-only). Guardian: Deployer.	0 ETH, 0 IFR
FeeRouterV1 `0x4807B77B…0C60a`	Swap fee router. Charges `protocolFeeBps` = 5 (0.05%) on the ETH value of swaps routed through it and sends that fee to BuybackController. It received the 1% IFR pool fee until Proposal #21. That IFR is held by FeeRouterV1; the contract has no direct withdrawal function, and Governance is reviewing options. Fee-exempt.	Admin: Governance.	734,545.074097347 IFR, 0 ETH

“Governance” above means the Governance contract 0xc43d48E7…E8caD041: every owner action on these contracts is a Governance proposal with a 48-hour timelock, executed through the Treasury Safe (3-of-5). The deployed Governance contract’s ownership itself can be transferred directly by its owner, the Treasury Safe, without that delay (tracked as CWA-25). The Deployer guardian on BuybackController and BuybackVault can only pause; it cannot move funds.

CEX Fee-Exemption Policy

Policy approved 26.08.2026 at 00:17 MET by a 4-1 vote. The five-member Core Developer and Keyholder Council approved full fee exemption for transfers to and from officially verified centralized-exchange operational addresses. No CEX address is currently fee-exempt on-chain.

Once an exact exchange address is activated, every IFR transfer where that address is the sender or recipient bypasses the complete 3.5% fee: no 2.0% sender burn, no 0.5% recipient burn and no 1.0% pool fee.

Verification: The exchange must identify each operational Ethereum address and prove control through an official channel
Governance: TreasurySafe 3-of-5 submits a public setFeeExempt(address, true) proposal
Delay: Every activation remains visible during the 48-hour timelock before execution
Register: Executed activations and revocations are published in the public address register

Phase	Listing Type
Policy	Approved 26.08.2026 at 00:17 MET, vote 4-1
Current on-chain status	No CEX address active; verification and per-exchange Governance activation pending

Internal exchange trades are off-chain ledger entries and do not invoke the IFR token contract. Separate customer deposit addresses remain subject to the standard fee until each exact address is activated. Exemptions are monitored, periodically revalidated and can be revoked through setFeeExempt(address, false) using the same public Governance path.

Separate open Council agenda: possible exchange incentives, funding limits and governance participation are discussion drafts only. They are not part of the approved fee-exemption policy and authorize no IFR or Safe rights. Review the agenda and planned public vote log →

Public CEX Address Register

Exchange	Ethereum address	Proposal / transaction	Status
None	—	—	No CEX address activated as of 26.08.2026

MEV & Slippage Guide

When trading IFR on Uniswap V2:

Verified Mainnet path: The IFR/WETH pair is fee-exempt; the Uniswap V2 router is not. Pair swaps therefore bypass the 3.5% IFR token fee. Use the current quote and only the execution tolerance needed for AMM price impact and market movement.

// Uniswap V2 execution guidance for IFR
Token transfer fee on the exempt IFR/WETH pair: 0%
Slippage tolerance: derive from the current quote and price impact
Transaction deadline and gas: choose for current network conditions

Proposal #15 activated the pair exemption on 08.06.2026
The router itself is not an exempt address and does not need to be one for the pair transfer path
AMM price impact, liquidity depth and market movement still affect execution