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What is the pricing structure for Tornado Cash?

avatarEver RomeroNov 24, 2021 · 3 years ago3 answers

Can you explain the pricing structure for Tornado Cash in detail? How does it work and what are the fees involved?

What is the pricing structure for Tornado Cash?

3 answers

  • avatarNov 24, 2021 · 3 years ago
    The pricing structure for Tornado Cash is based on a sliding scale. The fees are determined by the amount of ETH being deposited into the Tornado Cash smart contract. The more ETH you deposit, the higher the fee percentage. This is to incentivize users to deposit smaller amounts and avoid large deposits that could potentially disrupt the anonymity of the system. The fees collected are used to reward liquidity providers and maintain the operation of the Tornado Cash system. It's important to note that the fees are not fixed and can vary depending on the current network conditions and demand for privacy services.
  • avatarNov 24, 2021 · 3 years ago
    When using Tornado Cash, the pricing structure is designed to encourage smaller deposits. The fees are higher for larger deposits, which helps maintain the privacy and security of the system. This ensures that users are not incentivized to make large deposits that could potentially expose their identity. The fees collected are used to support the Tornado Cash ecosystem and reward liquidity providers. It's important to consider the fee structure when deciding on the amount of ETH to deposit into Tornado Cash.
  • avatarNov 24, 2021 · 3 years ago
    The pricing structure for Tornado Cash is dynamic and adjusts based on the amount of ETH being deposited. The fees are higher for larger deposits, which helps maintain the privacy and security of the system. This ensures that users are encouraged to make smaller deposits, reducing the risk of potential attacks on the anonymity of the system. The fees collected are used to support the Tornado Cash ecosystem and ensure the sustainability of the project. It's important to check the current fee structure before making a deposit to Tornado Cash to ensure you are aware of the fees involved.