# Economics

## **Fees** 

#### **Transaction fee**

A transaction fee is applied to all types of transactions on ZkCloud. It is a small, standard fee that mainly serves the purpose of spam protection.

#### **Proving workload fee**

The proving workload fee consists of two components: 

* A small transaction fee.
* A compute fee. 

To submit a proving workload transaction to a specific prover program, the user needs to specify:

* Resource requirements for the proving workload.
* Maximum compute time.

The fee is calculated based on the above parameters. The amount is locked in the user’s balance until the workload is completed.

**Fee Calculation:** 

```
User Fee = Tx Fee + (Compute Fee * Compute Time * Resource Requirement Multiplier)
```

Note: If the user-specified max compute time is too short, the program will not complete, the nodes will return a fail, and the fees will be burned.

#### **Customizable redundancy**

Users can customize and increase redundancy by creating multiple workload requests for the same inputs. In case of added redundancy (multiple single-prover workloads) each prover is rewarded individually for the workload they completed.

#### **Verification fee**

No additional fee is applicable for the verification of proofs generated in ZkCloud.

## Rewards

### **Validator rewards**

Validators are rewarded via a traditional block reward and a small transaction fee paid by the users for all types of transactions.

### **Prover rewards**

Provers are rewarded for proof generation and verification.

In the global prover set, the provers that complete the workload within max compute time and submit a valid proof, earn an additional network reward. This reward is a fixed percentage of the user fee paid to the prover.

**Rewards for proof verification**

Provers are also incentivized to verify proofs (both valid or invalid) across the network. They receive a small reward for all proofs on which all of the verifying provers agree.

**Reward calculation:**

```
Prover Reward = (Workload Fee + Network Reward) + Verification Rewards
```