$AI3 Rewards & Fees
An overview of the $AI3 token and its structure for rewards and fees
Introduction
$AI3 (formerly SSC/ATC) is the native token used for rewards, fees, transactions, and staking on the Autonomys Network ($tAI3 on our Taurus testnet).
Rewards & fees
All participants in the Autonomys Network are compensated fairly for their maintaining the network via:
Fees: For transactions on the Autonomys Network (by users sending transactions)
Rewards: For participants' work on the Autonomys Network (via the protocol's issuance of newly minted $AI3)
Different participants receive their compensation through a combination of fees and rewards depending on their role.
Farmers
Farmers pledge SSD space to the network and receive $AI3 in the form of:
storage fees for the transactions and bundles they include in consensus chain blocks
block rewards for the blocks they propose (issued by the protocol)
vote rewards (issued by the protocol)
Operators
Operators pledge compute and a minimum stake to the network and receive $AI3 in the form of:
relay fees for the XDM messages they relay between domains
XDM compute and relay fees are collected from the sender and burned on the sending domain before being minted on the receiving domain and distributed to operators upon successful delivery and execution.
Nominators
Nominators pledge a minimum stake to an operator's nomination pool and receive $AI3 in the form of:
a share of the operator's compute fees for increasing the size of their pool (based on the nominator's share of the pool)
Transaction fees
Every transaction on the Autonomys Network has a:
Length: The number of bytes it consumes on the network
Weight: The number of picoseconds it takes a node with reference hardware to execute it
Autonomys separates transaction fees paid by network participants into:
Storage fees: For the storage space consumed by including a transaction in a block and archiving it
Compute fees: For the computational resources consumed by the execution of the transaction
Storage fees
The size of the storage fee depends on the length of the transaction and the amount of available storage on the network. The formula for the storage fee is:
For the purposes of storage fee calculation, the total $AI3 supply consists of all $AI3 in existence, including staked or otherwise locked $AI3. The total space pledged to the network is divided by the protocol's minimum replication factor of 50, ensuring that the network is able to reliably store all the transactions included in the consensus chain. The history size is the total size of all the blocks in the consensus chain that are archived.
Compute/execution fees
The size of the compute fee depends on the weight of the transaction and the demand on the network. Compute fees for the execution of extrinsics on the consensus chain (e.g. balance transfers) are collected by the block proposer. Compute fees for executing transaction bundles on domains are split equally between the domain operators who submitted the execution receipt (ER) containing the bundle (after the ER has cleared the challenge period).
The formula for the compute fee is:
Dynamic issuance
The issuance of the newly minted tokens by the protocol is dynamic, depending on recent demand for blockspace and a decay function that gradually reduces rewards over 40 years. This smooth reduction allows for higher rewards for early adopters, a gradual increase in the circulating supply in a more controlled manner, and an extended lifetime of issuance for the long-term viability of the chain.
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