Transaction Fees

This section describes fee distribution.

Constants

• FEE = 0.03 $TNK base fee.

Operations (excluding TRANSFER and TX)

Operation	Who pays / amount	When charged	Validator	Remainder
AddAdmin	Admin, 0	One-time during initialization	0%	n/a (free)
BalanceInitialization	Admin (sender), 0	While initialization flag is enabled	0%	n/a (free)
AppendWhitelist	Admin, FEE	Only if initialization flag is disabled	0%	100% burned (deducted from admin)
AddWriter	Writer candidate, FEE	Always charged	75%	25% burned
RemoveWriter	Writer being removed, FEE	Always charged	75%	25% burned
AdminRecovery	Admin, FEE	Always charged	75%	25% burned
AddIndexer	Admin, FEE	Always charged	0%	100% burned
RemoveIndexer	Admin, FEE	Always charged	0%	100% burned
BanValidator	Admin, FEE	Always charged	0%	100% burned
BootstrapDeployment	Deployment initiator, FEE	Always charged	75%	25% burned
Transfer	Requester, FEE	Always charged	75%	25% burned
TX	Requester, FEE	Always charged	depends on subnet owner (see TX cases)	depends on subnet owner (see TX cases)

Operation details

AddAdmin

• Payer: admin (network creator), amount: free.

• Effect: admin receives initial balance 1000 $TNK and initial staked balance 0.3 $TNK; admin is set as indexer+validator+whitelisted and admin entry is created. Runs exactly once during bootstrap.

AddWriter

• Payer: writer candidate, amount: FEE.

• Split: validator 75%, burned 25%.

• Effect: role set to writer, staking updated, key registered.

RemoveWriter

• Payer: writer being removed, amount: FEE.

• Split: validator 75%, burned 25%.

• Effect: role set to whitelisted, stake released, writer key unregistered.

AdminRecovery

• Payer: admin rotating writer key, amount: FEE.

• Split: validator 75%, burned 25%.

• Effect: admin writer key swapped, indexer entry updated to the new key.

BootstrapDeployment

• Payer: deployment initiator, amount: FEE.

• Split: validator 75%, burned 25%.

• Effect: deployment entry stored for the bootstrap.

Transfer (OperationType.TRANSFER)

• Payer: requester (sender).

• Fee: FEE (always charged, in self-transfer only the fee is deducted).

• Basics:

  • Amount deducted from sender: transferAmount + FEE. In self-transfer only the fee is deducted.

  • If the sender lacks full funds for the deduction, the operation is ignored (state unchanged).

• Fee split: validator 75%, burned 25%.

• Transfer amount to recipient:

  • Recipient is not a validator: recipient gets transferAmount (can be 0). A new recipient is initialized as READER with that balance.

  • Recipient is the validator: validator gets transferAmount plus its fee share (75% of FEE).

  • Self-transfer: recipient equals sender. Recipient balance is unchanged. Fee still goes 75% to validator, 25% burned.

Subnetwork TX (OperationType.TX)

• Payer: requester.

• Fee: FEE.

• Fee split depends on who deployed the subnet (bootstrapDeployer):

  1. bootstrapDeployer = requester, validator is different:

     • Validator: 50%

     • Bootstrap deployer: 0% (no discount for owning the subnet)

     • Burned: 50%

  2. bootstrapDeployer = validator, requester is different:

     • Validator (and deployer): 75% (50% as validator + 25% as deployer)

     • Burned: 25%

     • Requester: 0%

  3. bootstrapDeployer is neither requester nor validator:

     • Validator: 50%

     • Bootstrap deployer: 25%

     • Burned: 25%

     • Requester: 0%

• The fee is deducted from the requester before distribution. Others receive only the shares above.

Zero-fee operations

• ADD_ADMIN (one-time bootstrap, assigns 1000 $TNK liquid + 0.3 $TNK staked to admin).

• BALANCE_INITIALIZATION (sender -> recipient top-up) is free while initialization is enabled.

• DISABLE_INITIALIZATION is free, can be used exactly once to turn off balance initialization.

• AppendWhitelist before initialization is disabled is free (fee appears only after the flag is turned off).

Validator penalties

• For a batch with invalid operations or an oversized batch: penalty = FEE * invalidOperations.

• The penalty is taken from staked balance, not distributed, and the validator is downgraded to whitelisted. Remaining stake after the penalty returns to the normal balance, so part of the penalty is effectively burned.

• Each failed operation in a batch (validation errors, unmet conditions, invalid payload) increases the invalid counter and triggers at least one FEE worth of penalty.

Note on the bs field in TX

• bs identifies the subnet bootstrap, mapped in MSB to the subnet creator address.

• A TX is valid only if bs points to a registered bootstrap.

• The subnet owner (address tied to bs) receives a share of the TX fee only when they are not the requester. If requester or validator is the creator, the creator’s share is folded into their respective percentage as described above.