In the fast-paced world of crypto trading, retail investors often feel like they're pedaling uphill on a tricycle while high-frequency traders zoom past in luxury cars. That's the vibe captured in this viral tweet thread from Kevin of When Shift Happens Podcast, highlighting why zero fees could soon be the norm for everyday traders.

The thread kicks off by quoting insights from @fiddybps1, who breaks down three key reasons why retail users deserve zero fees. First up: fees should target toxicity, not volume. In trading lingo, "toxicity" refers to how risky or disruptive a trade is to the market's liquidity. Retail trades are usually non-toxic—they're straightforward buys and sells that don't shake the order book. High-frequency trading (HFT), on the other hand, can be more aggressive and costly for liquidity providers. Yet, traditional exchanges charge based on trade volume, giving discounts to big players while sticking retail with higher costs.

Kevin expands on this, explaining that retail flow is the "cheapest to serve" but pays the most—often 5-10 basis points (bps) per trade. Basis points are just a fancy way of saying 0.01% of the trade value, but they add up quickly for small traders. He compares retail to steady passenger traffic and pros to high-speed racers, where accidents (market disruptions) have bigger impacts.

Why does this imbalance exist? It's all about the money trail. Exchanges use volume-based tiers that favor HFT firms, and a chunk of retail fees—up to 90%—goes to affiliates and key opinion leaders (KOLs) for promotion. Essentially, you're subsidizing marketing every time you trade. Zero fees flip this script, cutting out the middlemen and making relationships more genuine, perhaps through token incentives instead.

Then there's the builder angle. In crypto, "builders" are developers creating frontends, apps, or tools on top of exchanges. With zero base fees, they get more flexibility to monetize without a fixed cut going to the exchange first. It's like the App Store model, where creators keep more control and share revenue fairly. This fosters innovation, especially in decentralized finance (DeFi) where meme tokens thrive on quick, low-cost trades.

Paradex, a zero-fee perpetuals exchange built on a fast layer-2 blockchain, is leading the charge here. They use Retail Price Improvement (RPI) orders to separate retail from algorithmic flow, allowing better pricing and tighter spreads. Even giants like Binance are adopting similar tech, signaling a shift toward risk-based pricing over volume.

For meme token enthusiasts, this is huge. Meme coins like Dogecoin or newer viral tokens often attract retail crowds chasing hype. High fees eat into profits on small trades, but zero fees could democratize access, letting you ape into the next big thing without extra costs. It's about creating a fairer ecosystem where clean, everyday trading isn't penalized.

As the thread wraps up, zero fees aren't just a perk—they're inevitable for sustainable growth. By pricing based on toxicity, exchanges can build efficiency and trust. If you're trading memes or any crypto, keep an eye on platforms like Paradex that prioritize user alignment.

At Meme Insider, we're all about unpacking these trends to help you navigate the wild world of blockchain. Stay tuned for more deep dives into how tech like this powers the meme economy.