Terminology

• Fees are payments for transactions. Fees are paid with existing SSC. Fees include:
  • transaction storage fees for blockspace used
  • transaction weight (compute) fees based on computational resources consumed
  • transaction priority fees (aka tips)
• Rewards are earnings to network participants. Rewards are paid by the protocol itself by issuance of new SSC. This will increase/inflate the current supply up to a maximum fixed total supply. Rewards include:
  • block rewards
  • vote rewards
• Network participants will receive compensation through a combination of “rewards” and “fees”, based on their role.
  • Farmers receive rewards for block production and fees for storage
  • Operator nodes/pools receive transaction fees

Stock & Flow

Dynamic Issuance

As opposed to having a fixed issuance rate, the Subspace Network implements a dynamic issuance rate based on network usage, where, roughly, the inflation rate is inversely proportional to the utilization rate of the blockspace.

TLDR: The farmer who proposed a block gets some fresh SSC + fees, and voters get some fresh SSC regardless of what the proposer got.

Dynamic Issuance Specification

Consensus Extrinsic Fees

When an extrinsic is submitted to the blockchain, the signer must cover the fees associated with this extrinsic. A fee consists of the following components:

• storage fee
• compute(execution) fee
• optional priority fee (aka tip) ≥ 0

Storage Fees

A storage fee (per byte) pays for the blockspace the extrinsic occupies and its eventual archival. It is computed as a function of the credit supply issued to date and the space availability in the network.

$$ \text{storage fee per byte} = \frac{\text{total credit supply}}{\text{total space pledged}/\text{min replication factor}-\text{history size}} \frac{shannons}{byte} $$

$$ \text{storage fee} \left(\text{tx}\right) = \text{storage fee per byte}*\text{length(tx)}\ shannons $$

Implemented as transaction_byte_fee = credit_supply / max(TotalSpacePledged/MinReplicationFactor - BlockchainHistorySize, 1)