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Fees

A fee system to incentivize hosting as well as prevent attacks

Overview

Since Dash Platform is a decentralized system with inherent costs to its functionality, an adequate fee system is necessary in order to incentive the hosts (masternodes) to maintain it.

Fees on Dash Platform are divided into two main categories:

  • Storage fees
  • Processing fees

Storage fees cover the costs to store the various types of data throughout the network, while processing fees cover the computational costs incurred by the masternodes to process state transitions. For everyday use, processing fees are minuscule compared to storage fees. However, they are important in the prevention of attacks on the network, in which case they become prohibitively expensive.

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Fee System DIP

Comprehensive details regarding fees will be available in an upcoming Dash Platform Fee System DIP.

Costs

The current cost schedule is outlined in the table below:

OperationCost (credits)
Permanent storage40000 / byte
Base processing fee100000
Write to storage750 / byte
Load from storage3500 / byte
Seek storage2000
Query75 / byte
Load from memory20 / byte
Blake3 hash function400 + 64 / 64-byte block

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Credits

Refer to the Identity explanation section for information regarding how credits are created.

Fee Multiplier

Given fluctuations of the Dash price, a variable Fee Multiplier provides a way to balance the cost of fees with network hosting requirements. All fees are multiplied by the Fee Multiplier:

    feePaid = initialFee * feeMultiplier

The Fee Multiplier is subject to change at any time at the discretion of the masternodes via a voting mechanism. Dash Core Group research indicates maintaining fees at approximately 2x the cost of hosting the network is optimal.

Storage Refund

In an attempt to minimize Dash Platform's storage requirements, users are incentivized to remove data that they no longer want to be stored in the Dash Platform state for a refund. Data storage fees are distributed to masternodes over the data's lifetime which is 50 years for permanent storage. Therefore, at any time before the data's fees are entirely distributed, there will be fees remaining which can be refunded to the user if they decide to delete the data.

User Tip

Wallets will be enabled to give users the option to provide a tip to the block proposer in hopes of incentivizing them to include their state transition in the next block. This feature will be especially useful in times of high traffic.

Formula

The high level formula for a state transition's fee is:

    fee = storageFee + processingFee - storageRefund + userTip

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