When executing the swaps, traders pay a 0.3% swap fee. 0.05% of the total fees are collected by the Polkapool Treasury account. Polkapool will use these tokens to buy back Polkadex tokens (PDEX) from the market swapping them in the corresponding pools.
A portion of the converted PDEX is burned to keep the total supply fixed at 20 mln tokens and the remaining tokens will be sent to Polkadex Treasury. Traders who stake PDEX for feeless swaps benefit from the Polkadex Buyback mechanism because their tokens appreciate in value.
In this way, Polkadex maintains the fixed supply and provides more incentive for liquidity mining.