7 Fee-sharing Mechanism in Ecosystem

The application fee-sharing mechanism in NERO is designed to incentivize and reward ecosystem participants for their contributions to the network. This mechanism ensures that transaction fees generated by DApps are redistributed among widely-used applications, fostering a sustainable and collaborative economic alignment.

Contribution-Based Rewards: NERO’s fee-sharing mechanism allocates transaction fees based on the contributions made by various applications in the network. This includes developers who create and deploy DApps, and validators who secure and validate transactions on the blockchain. Each DApp’s contribution will be measured and quantified, and they are rewarded accordingly with a portion of the transaction fees generated by them.

Customizable Parameters: NERO’s fee-sharing mechanism offers flexibility and customization options to accommodate the diverse needs and preferences of ecosystem participants. Developers have the ability to define the specific rules and parameters governing fee-sharing arrangements within their DApps, allowing them to tailor the distribution of transaction fees according to their unique business models and revenue-sharing agreements.

Economic Alignment: By distributing transaction fees among applications, NERO’s fee-sharing mechanism aligns economic incentives and fosters cooperation and alignment of interests within the ecosystem. Developers are incentivized to create high-quality DApps that attract users and generate transaction volume. This economic alignment promotes the growth and sustainability of the NERO ecosystem over time.

Figure 10: Fee-sharing mechanism