Publication Date: November 3, 2024
As a community-driven blockchain project, Zether aims to be a reliable and sustainable alternative to Ethereum (ETH), putting miners and the community at the forefront. With this vision in mind, Zether includes a +5% Foundation Fee per block. This article delves into why this fee is crucial for Zether’s sustainability, how it benefits everyone involved, and why it doesn’t affect miners’ earnings.
First, it’s crucial to clarify that the 5% Foundation Fee does not reduce miners’ block rewards. Instead, it acts as an additional emission that’s calculated based on the miner’s reward. For example, if a miner’s reward is 100 coins, an extra 5 coins is added as the Foundation Fee, creating a total block emission of 105 coins. This way, miners still receive their full reward of 100 coins, with the 5% fee being allocated separately to support Zether’s sustainability.
In the blockchain ecosystem, fees are common across various platforms. For example, mining pools often charge fees ranging from 1 - 5%, which are directly deducted from miners' rewards, slightly reducing their payouts. Exchanges and other services may also charge transaction or service fees that users regularly pay without question.
Zether’s +5% Foundation Fee, however, stands out because it is designed specifically to support the project’s core team, without impacting miners’ rewards. Unlike typical mining pool or exchange fees that reduce a user's direct earnings, the 5% Foundation Fee is added on top of the miner’s reward. This way, miners receive their full earnings, while the Foundation Fee acts as an additional emission that goes directly toward the sustainability of the Zether ecosystem.
The Zether Foundation Fee is a transparent, fair method to fund development, especially considering Zether’s community-driven approach without premine or ICO. This structure not only maintains miner earnings but also aligns with the broader ecosystem of fees paid by users on various platforms.
This Foundation Fee is dedicated solely to supporting Zether’s core team, enabling them to drive the project forward. Many blockchain projects allocate up to 15-20% for team compensation or begin with large premines, allowing significant funds for development and marketing. Zether, however, launched with no premine, no presale, and no initial coin offering (ICO), making this fee the primary support for its core team’s efforts.
With this structure, the +5% Foundation Fee allows Zether to sustain its community-focused vision and attract talented contributors without compromising transparency. It is a balanced approach that nurtures the growth and resilience of the Zether ecosystem, aligning with the project's commitment to fair and equitable practices.