> ## Documentation Index
> Fetch the complete documentation index at: https://docs.towns.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Pricing Modules

## Overview

In the Towns ecosystem, Spaces have the flexibility to define their own pricing strategies through custom pricing modules. These modules are smart contracts that comply with the `IPricingModule` Interface and are responsible for determining the price of memberships based on various attributes.

## Implementation of Custom Pricing Modules

To implement a custom pricing module, a contract must adhere to the `IPricingModule` Interface. This interface includes the `getPrice` function, which can be programmed to calculate prices based on different criteria, such as the total number of memberships minted or other programmable attributes. See more examples in \[Recipes].

### Default Pricing Modules in Every Space

Every newly deployed Space in the Towns ecosystem is equipped with two default pricing modules:

1. **Dynamic Pricing Module** (default setting):

   * **Pricing Strategy**: This module adopts a dynamic pricing approach, where the price is influenced by the number of members in the Space.
   * **Price Calculation**: The price logarithmically approaches \$10 USD as membership reaches 1,000, and then again increases logarithmically to approach \$100 USD as membership reaches 10,000.
   * **Price Cap**: Membership prices never exceed \$100 USD.
   * **Initial Offer**: The first 100 memberships are offered for free.
   * **Payment Method**: Accepts ETH as payment.
   * **Reference**: For more details, see `DynamicPricing.sol`.

2. **Flat Fee Price**:
   * **Fixed Pricing**: This module implements a straightforward fixed pricing strategy.
   * **Minimum Price**: Sets a minimum price of \$10 USD for a membership.
   * **Payment Method**: Also accepts ETH as payment.

## Transaction Fee Distribution

An essential aspect of the pricing modules is the distribution of fees from transactions. These fees are split among key stakeholders:

* **Space Owner**: A portion of the fees is allocated to the SpaceOwner, providing an incentive for maintaining and growing the Space.
* **Towns Community**: At present, a share of fees contribute to the **River Eridanus Association**, supporting the overall development and sustainability of the ecosystem.  Upon implementation of they buy-and-burn function, the remaining fees will be contributed to the [Towns Lodge](https://townslodge.com) giving TOWNS tokenholders the decision on how to deploy those funds to further the Towns Protocol.
* **Referrers**: Referrers, if any, are also rewarded, encouraging community growth and engagement. Referrers can be set for both members of a Space as well as for the client being used to interact with the protocol.

**Note**: Free Spaces do not incur protocol fees on membership transactions (joining or renewing). Tipping within any space (free or paid) incurs a separate protocol fee on member tips, while bot tips have no protocol fee.