GrowOperative Fee Structure¶
GrowOperative uses a dynamic, value-based fee system designed to reward network participants, prevent spam, and remain accessible — even for users trading small quantities or low-value goods.
All fees are paid in RHEO, the platform's utility token. RHEO has a floating value, but for illustration purposes, we assume 1 RHEO ≈ $1 USD (illustrative only) during onboarding.
Core Fee Types¶
1. Transaction Fee¶
- Amount: 3% of margin (sale price minus cost basis)
- Applies to: Every sale at every hop — producer-to-consumer, intermediary resale, any transfer of goods for value
- Paid by: The seller at each hop
- Margin is automatically derived from the item's provenance chain, which records the cost basis at each prior hop
A producer with no upstream cost basis in the system pays 3% on the full sale price. An intermediary who bought at $X and sells at $Y pays 3% on ($Y − $X). A pass-through sale (same price as purchase) incurs no fee. A sale at or below cost incurs no fee.
Examples
- Alice grows tomatoes and sells 5 lbs for $10 → fee = 3% × $10 = $0.30
- Bob buys the tomatoes for $10, resells to Peter for $12 → fee = 3% × $2 = $0.06
- Peter resells to Paul at cost ($12, no markup) → fee = $0
- A distributor buys $1,000 of produce, sells for $1,050 → fee = 3% × $50 = $1.50
This is a value-added (VAT-style) fee model: every participant pays only on the value they add to the chain, not on the gross transaction. It prevents fees from compounding across long supply chains and keeps thin-margin intermediaries economically viable — which is essential for real-world farm-to-table supply to function on the network.
2. Action Fees (Used Only if Needed)¶
GrowOperative aims to minimize friction. Action fees are disabled by default and may only be activated if specific abuse patterns or scaling needs arise.
| Action | Fee (RHEO) | Status | Notes |
|---|---|---|---|
| Listing an item | 0.25 | Disabled | Reserved for potential spam prevention; not charged at launch |
| Claiming a listing | — | Not used | No fee; claiming is free unless a reservation system is added |
| Ledgered Credit Entry | — | Removed | Formal credit entries are core functionality and should be free |
How RHEO Flows¶
- RHEO is required for all fees, but users don’t need to hold it directly.
- When a user initiates a trade, the required RHEO flows automatically from FOAF stakers through the user’s social trust chain.
- The originating FOAF holder is credited, and each intermediary is compensated.
RHEO Routing Premium¶
Intermediaries earn a small premium when they help route RHEO through the trust network. This compensates them for extending liquidity and holding temporary obligation.
Example (Single Hop):¶
- Bob holds 1.00 RHEO
- Mary needs 1.00 RHEO
- You are the intermediary
- You owe Bob: 1.00 RHEO
- Mary owes you: 1.01 RHEO
- You earn: 0.01 RHEO
Example (Multi-Hop):¶
- RHEO passes through 3 intermediaries, each with a 1% routing premium:
- Final cost to Mary = ~1.03 RHEO
- Each hop earns 0.01 RHEO
This: - Rewards participation - Encourages short, efficient trust paths - Incentivizes users to hold their own RHEO - Drives demand for owning FOAF to generate RHEO directly
The default premium is 1% per hop, configurable by FOAF governance.
Off-Platform Payments¶
GrowOperative does not process payments. Instead, users handle settlement however they choose: - eTransfer - PayPal / Venmo - Cash at pickup
The payer marks the payment as sent, and the receiver confirms receipt. The app only records the agreement and fulfillment.
Fee Distribution Breakdown¶
All RHEO fees are split as follows:
- 50% → Node Operators (infrastructure maintainers)
- 30% → Treasury (development, support, education)
- 20% → Burned (to regulate RHEO supply)
This model sustains the system without relying on donations or volunteers.
Summary¶
| Fee Type | Basis | Rate |
|---|---|---|
| Transaction | Margin (sale − cost basis) at each hop | 3% |
| RHEO Routing Premium | Per hop RHEO forwarding | 1% of RHEO passed |
| Listing / Action | Flat (if applied) | 0.25–1.00 RHEO |
RHEO-based fees scale with value added, not gross volume — ensuring fairness for every participant and keeping supply chains of any length economically viable.
For more, see Tokenomics or DAO Transition.