Since the transactions will not have fees, how will the network be maintained? And how exchanges will deal with rates, since they charge network fees for withdrawal.
Sorry to be replying to it so late - we have another thread going.
Basically we have a fee subsidizing model where fees (which exists) are subsidized by a dApp operator in order to simplify process of purchase/engagement for service/goods consumer. At the same time, since we are running a dxPoS consensus, coins are minted and distributed to token holders, effectively dApp operator can be a token holder who stakes tokens or even become a Delegate (validator) and receive a part of block reward. There is a minting cliff built in and at certain point rewards will come from transaction processing during the block creation.
Mind you, our model is noninflationary as we have a separate EIP20 token on Ethereum blockchain that secures the consensus and a coin that fuels transactions on Aerum.