# Fee Reduction

Liquid charges a **platform fee** for tokenization services — **0.5% of the asset’s value when paid in SOL** (the base currency).\
However, if the user opts to pay with **$LIFI**, the fee is reduced to **only 0.3%**.\
This **40% discount** provides a strong incentive to use $LIFI for transactions.

**Example:**

* Tokenizing a **$1,000,000** asset would cost **$5,000** in SOL fees,
* But only **$3,000** worth of $LIFI.

The fee reduction not only drives **demand for $LIFI** (as users will acquire $LIFI to save on fees), but also **rewards early adopters** who hold and stake $LIFI.

The platform fee structure in $LIFI can be **dynamically adjusted by governance** in the future, but the guiding principle is to **always make using $LIFI more attractive** than paying in a non-native currency.