ZIP: Optimized L2 Gas Fee Redistribution for Enhanced Ecosystem Growth
Abstract
This ZIP proposes a strategic redistribution of L2 gas fees to incentivize and reward the network participants, namely DApp developers, ZKF stakers, network users, and grant recipients. This approach aims to foster a vibrant and engaged community, driving network growth and value, ultimately propelling ZKFair towards its goal of becoming a major blockchain project.
Motivation
The prevalent model in many protocols, where the majority of gas fees are centralized, often leads to user exploitation and a lack of incentives for network participants. To differentiate ZKFair from these models, this ZIP proposes a more equitable system that rewards all stakeholders, fostering a fair and engaging ecosystem. This approach not only aligns with ZKFair’s mission but also enhances the collaborative spirit necessary for sustained growth and success. It’s important to note that the proposed fee allocation for incentivizing various participants in the ZKFair ecosystem comes after covering ZKFair’s operational costs.
Rationale for Allocation Percentages
20% to DApp Developers: This allocation incentivizes the creation of innovative and user-friendly DApps, essential for ecosystem diversity and user attraction. This balance ensures that developers are adequately rewarded while other crucial aspects are not neglected.
35% to ZKF Stakers: Stakers play a pivotal role in network security and governance. This significant allocation encourages long-term holding and active participation in network governance, fostering a stable and secure ecosystem.
35% to Network Users: By rewarding users for transactions and participation, this allocation aims to increase network activity and user engagement. It recognizes the value of regular users, the backbone of the ecosystem, and motivates them to contribute more actively.
5% for Grants: This allocation fuels innovation and growth within the ZKFair ecosystem by funding new projects and ideas. Grants attract new talent and ideas, ensuring long-term vitality and competitiveness.
Conclusion
This allocation strategy ensures that all key contributors to the ZKFair ecosystem are adequately incentivized, promoting a balanced and sustainable network. Reaching a 10 billion dollar valuation hinges on user acquisition and retention. Users are the driving force behind a protocol’s growth, utility, and value. This proposal’s allocation strategy prioritizes user incentives to attract and retain users, fostering a thriving and engaged community. By prioritizing user incentives, ZKFair can significantly expand its user base, enabling it to achieve its ambitious valuation goal.
ZKFair’s commitment to user-centricity and equitable distribution aligns with the ethos of decentralization and fairness in the blockchain space.
By implementing this ZIP, ZKFair can establish itself as a truly community-driven project, empowering its users to share in the success of the protocol while fostering a vibrant and sustainable ecosystem.
I think marketing is part of the ZKFair’s operational costs, if its not, then it can be added here. My proposal is more about Broad-Based Incentivization a.k.a. rewarding the real users that make transaction, because that is missing from the L2 Gas Fee Sharing docs. Real users bring one of the biggest value to a network and thus deserver to be rewarded properly, either by subsidizing transactions or ZKF tokens.
Yeah, I think rewarding only the stakers is not fair to others. Stakers are people that mostly have money, what about the other ones that can’t afford to stake?
But that’s the core of PoS. People who have money stake Tokens to run Validators for the network. There needs to be a worthy reward for them so that at least after deducting operating costs they still make a profit. ZKFair’s only source of revenue is gas fees, not block rewards. Therefore, this revenue is inherently very low
You are right, stakers/validators are very important, but how can we compute how much fees will be generated and given as staking rewards? If the network have high usage it will generate more fees and thus everyone can get value from this. Just look what Era and Arbitrum publicly announced as generated fees. My proposal is to give something to the network users, the guys who make the transactions and this way they will get something back every time they use ZKFair.
Mantle for example are rewarding every transaction right now with 10 MJ points which will get something from their 25 million MNT prize pool.
Also there is this dApp on Era called Zkswap, they reward you for every swap with some of their tokens.
I think ZKFair can do something like that and reward every user interaction. You can call it “Gas rebate” if you want.
If we call ZKFair a “community network”, then we must care for everyone, not only for LP’s, dApp developers and stakers.
Oopsie ! Great eyes, haha. It was actually supposed to be 37.5 for stakers and network users, but I made a typo. I saw it yesterday, when it was already non-editable.
Anyway, the percentages doesn’t matter that much, my core proposal is to reward the network usage, how much, it can be voted via snapshot voting process. I dont think there is another L2 that does that and its a great step towards more fair fee economics.
There is no other L2 that does this and if dapp can do it, I think its doable on large scale. At the moment, according to the docs, only developers and stakers can get the rewards, but this means that the biggest growth factor - the network end users - are left out of this.
Yes, but ZKFair is trying to change the narrative, right? - “For the community”
I’m not against the stakers, but If you reward only stakers and developers, you are excluding the end users, who are the bread and butter of any network. That is why I said, not fair. I hope you got my point.
! Great eyes, haha. It was actually supposed to be 37.5 for stakers and network users, but I made a typo. I saw it yesterday, when it was already non-editable.