# Add 0,5% redemption fee to DeFi Pulse Index (DPI)

**URL:** <https://gov.indexcoop.com/t/add-0-5-redemption-fee-to-defi-pulse-index-dpi/159>\
**Category:** Products\
**Tags:** dpi\
**Created:** [15 October 2020 13:45 UTC](https://gov.indexcoop.com/t/add-0-5-redemption-fee-to-defi-pulse-index-dpi/159 "2020-10-15T13:45:59Z")\
**Posts on this page:** 1\
**Showing post:** 42

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**Author:** ![setoshi](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/setoshi/32/54_2.png) [@setoshi](https://gov.indexcoop.com/u/setoshi)\
**Post date:** [9 November 2020 19:15 UTC](https://gov.indexcoop.com/t/add-0-5-redemption-fee-to-defi-pulse-index-dpi/159/42 "2020-11-09T19:15:34Z")

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I’m very pro an issuance/redemption fee, as it also provides the following benefits:

- **Volume-based monetization** : Similar to WBTC and other asset issuance protocols (which charge 0.2%+ on mint/redeems), this primarily affects market makers (which typically mints/redeems when there is a spread). And agreed w/ @richard that the fee generation potential could be much larger than streaming fees. The previous concern is that entry/exit fees could dissuade the carry trade, but that is less of a worry if we are doing intrinsic productivity.
- **Increasing user retention** : This improves user retention if net fees are lower and only benefits end users (as most do not mint/redeem themselves).

That said, I think this would be a huge boon to sustainability that doesn’t hurt end users.

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_[View the full topic](https://gov.indexcoop.com/t/add-0-5-redemption-fee-to-defi-pulse-index-dpi/159)._