Fees and Taxes

General Overview

➜ To ensure long-term sustainability and protocol health, Dragon Finance implements a lightweight yet effective fee system. These mechanics are designed to support the treasury, stabilize the $DRGN token, and reward committed users.

$DRGN Transaction Fees

➜ Every buy or sell of $DRGN on the open market incurs a 3% fee. This fee is entirely redirected to the treasury, helping fuel future development, marketing, and stability mechanisms. There is no burn on regular transactions — the focus is on treasury growth.

Claiming Rewards

➜ When users claim pending $DRGN rewards from their DRAGONs, a 5% fee is applied, and it's 100% burned. This mechanism helps counter inflation and rewards users who choose to compound instead of claiming.

🧠 Compounding your rewards is fee-free and therefore more efficient over time.

Compounding Fees

➜ Compounding is completely free of protocol fees. You can reinvest your pending $DRGN into new DRAGONs without any penalty, maximizing your yield growth over time. You’ll only pay standard BSC network fees (minimal).

Bonding with $BNB

➜ When using $BNB to bond and buy DRAGONs at a discount, there are no fees applied — 100% of your contribution goes directly to the Dragon Finance Treasury, which is the only source of income for the team.

Summary of Fees

Action	Fee	Destination
Buy/Sell $DRGN	3%	100% to Treasury
Claim Rewards	5%	100% Burn
Compound Rewards	0%	–
Bonding with $BNB	0%	100% to Treasury

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Sustainable Fee Structure

➜ The fee model behind Dragon Finance is intentionally minimal and aligned with long-term sustainability. It encourages reinvestment (compounding), feeds the treasury, and uses burn mechanisms only where they truly matter — on extracted yield.

This keeps the game clean, transparent, and favorable to real farmers.