PAW Documentation

Bridge Fees

Bridge Fees

This diagram outlines the distribution of a 0.5% fee charged for transactions made through the 'Bridge PAW' system. Here's a breakdown of the process:

       
  • A user initiates a transaction, which is subject to a total fee of 0.5% of the transaction amount (denoted as 0.5 PAW in the diagram).
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  • This fee is split equally into two parts of 0.25% each.
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  • The first 0.25% portion is further divided, with 60% going to a treasury and 40% allocated to development.
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  • After the fee deduction, the remaining amount of the transaction (99.5 PAW) is returned to the user.

When calculating the fees, we have to consider Treasury and developers' reward (α), Validator rewards (β), pool participants (γ), Validator liquidity percentage (δ), and Delegator liquidity (θ).