Trading Volume Tiering

Trading volume tiering is a fee schedule where the cost per trade decreases as the cumulative trading volume of a user increases. Exchanges implement this to reward high-frequency traders and institutional participants who provide consistent volume.

By lowering costs for heavy users, platforms maintain higher liquidity levels and retain active market participants. This structure creates a competitive environment where traders are incentivized to centralize their activity on a single platform to reach lower fee tiers.

It is a fundamental tool in platform tokenomics used to drive user retention and volume growth. Traders must evaluate whether the cost of achieving a higher tier justifies the reduction in per-trade fees.