Fees

Transaction fees

All standard and seed transactions incur a 0.25% fee. This fee is split evenly among the verifier of the transaction's block and the verifiers of the previous nine blocks. For blocks before block 9, the fee is split evenly among the verifier of the transaction's block and all previous blocks. Transaction fees that cannot be divided evenly are rounded down to the nearest micronyzo, and the remainder is rolled over to the next block.

In version 1 and later of the blockchain, 1% of organic (standard) transaction fees (0.0025% of organic transaction amounts) is transferred to the cycle account (address 0000000000000000-0000000000000000-0000000000000000-00000000 00000002). This replenishment of the cycle account will ensure that this account is a perpetual source of funding for maintenance and development of Nyzo.

Outgoing cycle transactions are not charged a transaction fee. Cycle transactions are likely to be relatively large, and charging a fee on these transactions would provide an inappropriate incentive to place cycle transactions on particular blocks to allow particular verifiers to collect the fees.

Maintenance fees

In blockchain version 0, every account except 0000000000000000-0000000000000000-0000000000000000-00000000 00000001 was charged a fee of µ1 every 500 blocks from its creation for as long as it had a balance greater than 0. This fee was intended to combat intentional inflation of the balance list through creation of many small accounts, and it was a negligible amount for legitimate accounts.

In blockchain version 1, the maintenance fee was adjusted to µ100 every 500 blocks, but the amount was only charged to accounts less than ∩1.

In blockchain version 2, a coding error eliminated maintenance fees entirely. This mistake was corrected in Nyzo verifier version 580, restoring the fee structure from blockchain version 1 for blockchain versions 3 and greater.