Contract Rewards

A portion of the fees generated by specific transactions is allocated to contracts running during those transactions. These "random rewards" can be distributed according to rules specified in the contracts, such as being allocated to accounts controlled by contract developers, investors, DAOs, etc. The percentage of fees allocated to these rewards is set as a system-level parameter, initially at 30%. Developers can always charge additional fees outside this mechanism by requesting extra funds for contract calls. This creates a business model for developers: charging for their applications. The system-level minimum fee prevents "bottom-feeding competition," which could drive fees to zero or be paid by other developers. This effectively incentivizes developers to build applications and core network contracts since they will receive compensation proportional to the usage of these contracts.

Token holders can choose not to participate in staking, for instance, because they are merely temporary holders, providing liquidity to the transaction market, or they prefer not to participate. Non-participating token holders do not gain additional benefits from the network’s operations, although their tokens still have utility in driving data storage and application usage on the network.