Fees

Fees

To understand how optimistic bridges work, it’s necessary to be familiar with the roles fees play. In Pheasant Network, there are two types of fees levied on participants.

Relayer Fee

Relayer fees refer to the fees paid to relayers by users for accepting their bridge requests. These fees include a reward for the relayer, as well as compensation for the gas fees that relayer needs to pay when transferring users’ assets between networks. Relayers have the authority to set their own rates, and users can choose the lowest fee from among all the offers.

While the Pheasant Network is currently the only relayer, we anticipate that once the protocol is ready to accommodate multiple relayers in the future, relayers will naturally determine the best rates based on the principles of market competition.

Protocol Fee

Protocol Fees are paid to the protocol by users through the Relayer fee, sent to and stored in our treasury and used to achieve the network’s sustainable development. The community has the right to decide where and how to spend the accumulated fees in the treasury. Although this rate has yet to be determined, we plan to set it in the future as the project moves ahead.

Minimum Amount

Pheasant Network has implemented a minimum amount requirement for bridge transfers, which is necessary due to the need to obtain a blockhash from Layer 1 for the dispute process.

On Pheasant Network, relayers are obligated to deposit a bond in advance, which will be slashed if a disputer exposes their dishonest behavior. The disputer is then rewarded with the slashed bond for bringing the dishonesty to light.

To slash a bond, disputers must acquire a blockhash from Layer 1 for the fraudulent transaction, which incurs certain gas costs. If the gas fees for obtaining the blockhash exceed the reward amount given to the disputer, there will be no financial incentive for them to challenge the relayer. Since the reward is funded from the user's transferred amount, the restriction on the minimum amount is crucial for ensuring the protocol's security.