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Secondly, you are also charging 0.4% the minimum fee, meaning the fee is being charged in percentage so doesn't that compensate for the higher tx fee too ?

Firstly, we don't always make a profit.

Let's do some basic math. You deposit the minimum amount of 0.001, and our profit is 0.4%, which is 0.00000400 BTC. We spend 0.0006 on the transaction, while charging the user 0.0003. We end up with a loss of -0.000296.

Of course, there are orders for larger amounts. It's for this reason that we don't set the commission at 0.0006; in other words, 0.0003 a reasonable compensation takes place.

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First of all, if you did put a change in the fee, it would have been good if you tell us here also on the ANN thread so we know about it.

Your advice has been noted.

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It was already highlighed by many reviewers that as they add the addresses to mix, this 0.002 BTC 0.0003 BTC, amounts too much higher and it discourages users who want to mix small amount of Bitcoins.

Firstly, if you had actually used similar services, you would know that this fee is one of the lowest in the market.
Secondly, the vast majority of those who suggested reducing the commission from testers, claiming that they are large, also did not use similar services before because there was no elementary comparison of the service parameters with competitors.

In other words, unfortunately, some testers did not perform well in the testing task, and not everything that testers write should be taken into account.

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From 200+ tx fee, we are now back to around 25-26 bytes

Our system does not rely on https://mempool.space. I was just trying to point out the weekly trend, which was hard to ignore if you use cryptocurrencies.
For obtaining the recommended fee, we use other, more reliable methods. At the moment, we do not observe a significant decrease under conditions of guaranteed confirmation in 2 blocks.

It might happen in the next 5 minutes, but not yet Wink

The adjustment of the fee in our system will occur automatically.

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We are very busy and working hard to improve the system. Sorry. It's not always possible to respond promptly to forum questions.
In the coming week (hopefully), we will prepare a detailed report.