The new Ghost Protocol fee distribution system is live in the NIX Protocol Layer from block 115,921. This is a unique and trustless integration delivering equal distribution of Ghost Protocol fees among all active Ghostnodes.
Anatomy of NIX Ghostnode Subsidy
- Ghostnodes earn block rewards of 8.448 NIX every time a new block is generated, of which the frequency of payment is based on the volume of active nodes on the network.
- Additionally the 0.25% fee for all public-to-private transactions enabled by the Ghost Protocol (specifically privatised NIX via the Ghost Vault as well as future dApp and sidechain integrations) are awarded.
This mechanism affects only the latter and allows for all fees generated by Ghost Protocol use to be distributed fairly, equally and securely to the entire network of Ghostnodes, removing the luck element completely. This change ensures the fair distribution of all public to private NIX transaction fees, including any extraordinary fluctuations in use.
Ghostnode Fee Pooling
The role which Ghostnode Fee Pooling plays in this new fee distribution system is to destroy the generated fees and in each 720 blocks cycle (approximately 24 hours considering NIX block emission), register the total amount of burnt rewards before reminting/regenerating the total figure for equal distribution. The distribution routine filters out any nodes that haven’t been active during that cycle. To achieve this in a trustless way it is the Ghostnodes themselves who each run this calculation to reach consensus before the distribution event.
Origin of Ghostnode Service Fees
At present the Ghostnode privacy fees are generated via NIX’s intra-chain transactions. As seen in the roadmap, the NIX DEX Manager will deliver an increased use of the Ghost Protocol providing an increased source of income for these masternodes as interoperable private transactions via DEXes (or any other dApp) will be available for endless cryptocurrencies and tokens, including Bitcoin. In addition any other dApp (third-party or otherwise) developed on top of the NIX dApp Layer involving public to private transactions will also generate fees to be serviced by the Ghostnode fee distribution system.