Flow controls govern the amount of coins that can be converted (to $RLY) and transferred (to another user, transferring to a creator is excluded) after purchase. Creator Coins are subject to flow controls designed to promote utility and usability over speculation. The flow controls are modeled on token bucket algorithms and are designed to enforce per user, per coin rate limits while allowing for bursts in activity.
Users will notice flow controls in the Convert, Redeem, and Send interfaces. In each, users will see an "up to" amount that will be less than their total balance when they are subject to limits applied by the flow control system.
The specific implementation includes:
A configurable maximum allowance defined as 5% of the circulating supply of a creator coin
Accrual towards that maximum allowance over 30 days
At any given time, a user has an allowance limiting the amount of a creator coin that they can sell or transfer based on the above rules. Each time a sale or transfer is completed, that amount is deducted from the user's available allowance for that coin and accrual up to the maximum allowance continues.
Additionally, there are configurable exemptions that allow for unrestricted transfers to and from specified addresses for each coin that are designed to allow commerce and donations to happen without restriction.
The flow control calculation tracks the last time you (a creator or fan) performed an action and what your allowance was at the time of that action. When you return in the future to perform another action, your current allowance is calculated based on the time that has passed since your last action, your allowance at that time, and the current circulating supply of coins. This allowance is what the flow control will allow you to send or convert at this time; with the exception that exemptions such as sends to creators in their own coin are not subject to this allowance.
The “Up to” amount you will see when you go to send or convert coins shows you what you are currently able to send or convert based on the above allowance calculation and your current balance.
Days since last action
Allowance following last action
Current circulating supply
30+ (flow controls reset after 30 days)
5% of current circulating supply
Creator Fees are a slippage- or price impact-influenced fee assessed on all sales of Creator Coin. This fee is given to the respective Creator as sidechain RLY.
The fee is determined by looking at the percent total amount of RLY removed from the Creator Coin's backing (liquidity pool) vs. total backing by the sale. This percentage is applied to the sale amount as the fee.
In this way, the Creator Fee is effectively a sliding scale with smaller fees on smaller sales, and larger fees on larger sales.
Note: Given the sigmoidal token bonding curve of some Creator Coins, it is possible for a sale to incur a percent fee that slightly differs from the visible market price change to the coin.
1.) A sale amounting to 1000 RLY of a Creator Coin with 100,000 RLY backing is made. This equates to a 1% 'removal' of RLY backing. This 1% is then applied to the 1000 RLY sale to direct 10 RLY to the Creator The remaining 990 RLY nets to the seller.
2.) A sale amounting to 2000RLY of a Creator Coin with 100,000 RLY backing is made. This equates to a 2% 'removal' of RLY backing. This 2% is then applied to the 2000 RLY sale to direct 40 RLY to the Creator. The remaining 1960 RLY nets to the seller.