Entity fees are an important component of the ESP. They provide capital for performing critical functions to the protocol.
Other protocols utilize selling bonds to support the same functions as Entity fees, but we believe that approach is riskier because if bonds are not purchased, the token can lose its support and spiral downward in price as we have seen with several of these bond based protocols.
Selling bonds also costs token holders. It reduces the amount of APY that can be offered and eliminates the ability to offer a stable APY.
The limited amount of the fees (5% for buys and 7% for sells) allows Entity to provide $ENTITY holders with the stable high yield of 390,344.76% APR the first year(2.24% daily ROI).
Click here to see the breakdown of fees and where they go.