Dynamic Utility Fee Reduction Mechanism (Utility Fee Halving Program)

To ensure long-term sustainability while progressively enhancing usability and adoption, the RUCCO Protocol implements a predefined Utility Fee Halving Program. This mechanism systematically reduces the utility fee over time while maintaining the protocol's core economic structure. The utility fee will never be fully removed, but it will be progressively reduced to a final state of 1.5% to maintain protocol integrity while optimizing transaction efficiency.

As the utility fee decreases over time, the proportional distribution among the core ecosystem allocations—Node Holders, Liquidity & Operational Costs, and the Ambassador Node (which transitions into a mechanism for permanent removal from circulation to ensure ecosystem health)—will remain unchanged, ensuring a balanced and sustainable economic model throughout all phases.

Phase	Period	Transaction Fee	Rationale
Early stage	Q2 2025 – Q4 2026	6.9%	Initial sustainability, building liquidity, and supporting early adopters
Adoption acceleration	Q1 2027 – Q4 2028	4.5%	Enhancing accessibility and increasing transaction volume.
Maturity phase	Q1 2029 – Q4 2030	3.0%	Optimized utility fee structure supporting long-term ecosystem stability.
Long-term stability	Q1 2031 and beyond	1.5%	Sustainable transaction cost, preserving protocol integrity.