All blockchain altering transactions are subject to a fee though some transactions may be eligible to be covered by bundled transactions, which come with every FIO Address.
The FIO Protocol is designed such that fees charged to participants within the ecosystem are based on market forces and benchmarked against costs of running block producing infrastructure. It is therefore likely that the amount of FIO Tokens required for different fees will change based on the market value of the FIO Token and cost of running a node such that the human perceived cost of a FIO Address or transaction of the FIO Chain will likely remain more constant even though the human perceived value of the FIO token likely will change over time.
To accommodate this, fee amounts will be set based on bids from block producers in the following way:
- Each of the 21 scheduled BPs submits their desired fee amount of FIO Tokens for each blockchain interaction and amount of bundled transactions to be included with every FIO Address.
- Amounts submitted by active block producers are analyzed, and the fee is set at median of all submitted amounts.
|End point||Bundled tx used|
|10%||Entity facilitating transaction (TPID) or, if not provided, block producers.|
Block producer shares are distributed as follows:
|60%||Distributed among top 42 BPs, based on share of votes|
|40%||21 active BPs scheduled when fees are distributed, divided equally|
Although most fees are distributed within the same day, the block producer share of FIO Domain and FIO Address registration/renewal fees are paid out over 365 days to properly incentivize block producers which will be processing bundled transactions over the full validity period.