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  1. Yamata Nodes
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Transaction Fee Distribution

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Last updated 7 months ago

The first step in the reward process is the accumulation and distribution of transaction fees generated across the Yamata network. These fees come from users making transactions on the Yamata exchange, and they are allocated to various parts of the system to ensure fair rewards and long-term sustainability.

Transaction fees received are divided in the following ways:

  • 10% goes to the Validating Nodes (VNs) as a reward for their work in validating and securing the network. VNs always receive this portion of the fee as long as they remain active.

  • 10% goes to YAMATA as revenue to support the base operations of the platform.

  • 20% is allocated to the Future Reward Pool, reserved for rewards years down the line. This ensures that once the exchange and validation system matures, it can shift from tokenomics-based rewards to purely transaction fee-based rewards, making the system more sustainable over time.

  • 60% is kept in the Treasury, where each dollar received is locked in a smart contract for 14 days. During this period, the locked funds are held in reserve, pending and waiting for any challenges or evaluations of the sequencer’s behavior.

Current distribution of fees ensures that the network remains operational, with rewards being set aside for VNs, future incentives, and YAMATA itself. The locked Treasury funds provide an incentive for the Validating Nodes to monitor the sequencer’s performance, as these funds may be released to YAMATA or used to reward VNs who successfully challenge misbehavior.

The fee distribution model may be adjusted over time as the Yamata exchange grows and transaction volume increases, ensuring the system remains aligned with the evolving needs and sustainability goals.

Transaction Fee Treasury
Transaction Fee Split Flow