Robinhood Chain Experiments with Trading Fees on Stock Tokens

On Robinhood Chain, the project The Index ($INDEX) uses the fees generated by its token to purchase Stock Tokens of American companies, which are distributed to its holders. Each transaction on INDEX incurs a 3% tax, collected in ETH, which funds a treasury to buy a basket of 18 Stock Tokens, including Apple (AAPL), Nvidia (NVDA), and Alphabet (GOOGL). Stock Tokens are sent every 15 minutes to eligible wallets, proportionally to holdings, without staking or manual claims. The Index has generated approximately $1.42 million in cumulative fees, of which $1.24 million is allocated to holders, with revenues of about $286,000 over the last 30 days. The market capitalization of INDEX fluctuates around $17 to $19 million, while Robinhood Chain has experienced significant growth since the launch of its mainnet on July 1. Unlike traditional staking, the protocol does not issue new tokens to reward its holders but uses a portion of its revenue to acquire external assets. These assets, referred to as Stock Tokens, provide economic exposure to the underlying stocks without equating to direct ownership. The model heavily relies on the activity of INDEX, as an increase in volume generates more fees to purchase additional Stock Tokens.

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