# Free trading for 1inch DAO
**URL:** https://gov.1inch.network/t/free-trading-for-1inch-dao/95
**Category:** 2.0 1inch DAO
**Created:** [March 4, 2021, 1:02pm UTC](https://gov.1inch.network/t/free-trading-for-1inch-dao/95 "2021-03-04T13:02:50Z")
**Posts on this page:** 2
**Page:** 1
### Author:  [@DeFiknowledge](https://gov.1inch.network/u/DeFiknowledge)
#### Post date: [March 4, 2021, 1:02pm UTC](https://gov.1inch.network/t/free-trading-for-1inch-dao/95/1 "2021-03-04T13:02:50Z")
## ⭐ **Summary**
Reduce platform fees for those who are staking 1inch in the DAO proportional to the amount of tokens that have been staked.
_Note: The exact ratio can be voted on_
#### **Specific example for a 1:1 fee reduction for 1inch staked:**
Jim stakes 2000 1inch tokens in the DAO
1inch price = $5
2000 \* $5 = $10,000
this would then mean that Jim has a 100% fee reduction on trades \>= $10,000 in value.
## ⚠ **Risks**
Sam buys $1,000,000usdc worth of 1inch tokens
stakes 1inch in DAO
makes many trades quickly to take advantage of 0 fees \>= $1,000,000
unstake 1inch
sell $1,000,000usdc worth of 1inch tokens
**Possible solution**
Require those who want to take advantage of the fee reduction from staking 1inch in the DAO to lock in their tokens for a certain time period.
_Note: The length of time can be voted on_
## ❓ **Explanation**
From my understanding, 1inch DAO generates revenue from 2 sources.
1. _Swap fee_
The swap fee is a fixed fee charged on each swap on the protocol.
2. _Price impact fee_
The price impact fee is charged on top of the swap fee and is proportionate to the price slippage in a trade.
Here are the current rates for both…
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image697×456 66.8 KB
](https://global.discourse-cdn.com/standard11/uploads/x1inch/original/1X/63adb60c628d173fa695bc8712cf78db0666d492.png "image")
DAO governance fee generation = (total value of trade \* swap fee) + (price slippage \* price impact fee)
This fee generation is used to market buy 1inch and provided to those who are staking 1inch in the DAO.
## 💥 Impact on 1inch tokenomics
Effects:
1. Offers another functionality for the 1inch token.
2. 1inch token now provides a new benefit for the user of the platform instead of just those who are governing the platform
3. Offers longer term price stability due to locking mechanism
4. A new attraction to the 1inch platform as an even cheaper way to trade
**This is a tricky proposal because boiled down, this is what it looks like if implemented:**
There is a new attraction to the 1inch token from a different user base. Specifically those who are very active traders and want free trading fees. This comes with a monthly governance reward reduction to the DAO, due to this new fee reduction functionality. BUT! what is paired with this is an increase in buying pressure of the 1inch token and a locking mechanism which will bring greater price stability to the token in the long term.
**So the question then becomes,**
Is the governance fee reduction per month \< the new buying pressure and locking mechanism from new users
I’m convinced it is. What are your thoughts?
_Poll created to see initial interest_
_Poll ([view on site](https://gov.1inch.network/t/free-trading-for-1inch-dao/95/1))_
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### Author:  [@blaznup](https://gov.1inch.network/u/blaznup)
#### Post date: [March 6, 2021, 12:04am UTC](https://gov.1inch.network/t/free-trading-for-1inch-dao/95/2 "2021-03-06T00:04:01Z")
I think there would be quite a few that agree on that one. Def got my vote!!