This optimizes taxation fairly as flat fees are ideal for small transfers since the fees have little variance i.e., they are always small in comparison to the transfer amounts. A more, potentially systemic issue could occur on larger transfers. On a larger transfer a flat fee will have a nominal delta, however comparing the flat fee on a 50 versus 5000 transfer is significant. The fee taken is tangible but certainly fair by percentages. Per the model, the fees taken are always small from a percentage standpoint but still more than enough to support the project. Computing the fee formula on the blockchain can be very costly and gas intensive. For transfers of less than $100, the formula fee computation will make no noticeable difference, as it will be denominated in cents. In order to optimize transfers in terms of gas costs, a fixed formula for lesser amounts was ideal.