Transaction Fees and Validator Rewards

Laika Network: Transaction Fees and Validator Rewards

The Laika network employs a unique transaction fee and validator reward system to incentivize network security and participation. Here's a detailed breakdown:

Transaction Fees:

• Currency: Users pay transaction fees on the Laika network using Dogecoin (DOGE). This helps maintain network activity and discourages spam transactions.

• Low Fee Structure: Laika is designed to have low transaction fees compared to other blockchains, making it suitable for micropayments and high-volume transactions.

Validator Rewards:

• Combined Reward Structure: Validators receive a combination of rewards for securing the network and validating transactions:

  • DOGE from Transaction Fees: Each block generated by a validator includes all the DOGE transaction fees collected within that block.

  • Laika Token Multiplier: To incentivize validator participation, Laika utilizes a multiplier system. Validators receive a multiplied amount of Laika tokens in addition to the collected DOGE transaction fees.

Dynamic Laika Multiplier:

• Governance-Controlled: The Laika token multiplier is not a fixed value. It can be adjusted through on-chain governance proposals voted on by Laika token holders. This allows for dynamic adjustments to ensure long-term network stability and validator rewards that remain attractive even in the face of potential fluctuations in DOGE price.

Benefits:

• Sustainable Network: The combination of DOGE transaction fees and Laika token rewards with a dynamic multiplier incentivizes validators to secure the network and process transactions effectively.

• Dogecoin Integration: Utilizing DOGE for fees leverages the existing Dogecoin network and user base.

• Laika Token Value: The Laika multiplier system encourages validator participation and contributes to the value of the Laika token by increasing its demand through rewards.

Technical Aspects:

• Transaction Fee Collection: Laika smart contracts are responsible for collecting DOGE transaction fees during each transaction and accumulating them within the block being validated.

• Block Reward Distribution: Upon successful block validation by a chosen validator, the accumulated DOGE fees and the corresponding Laika token reward (calculated based on the current multiplier) are distributed to the validator.

• Governance Process: Laika token holders can propose changes to the Laika token multiplier through on-chain governance proposals. These proposals undergo a community voting process to determine if the multiplier is adjusted.

Conclusion:

Laika's innovative transaction fee and validator reward system, combined with the dynamic Laika token multiplier governed by the community, provides a robust and adaptable mechanism to incentivize network security and validator participation. This system contributes to the overall health and sustainability of the Laika network.