Network Economic Incentive Rules
1. Transaction Fee Model
ANCORA implements a dynamic EIP-1559 style fee market with base fee adjustment algorithm:
1.1 Fee Components
Base Fee: Algorithmically adjusted per block based on network congestion
Priority Fee: Optional tip paid by users for priority transaction inclusion
Maximum Fee Cap: Hard cap of 1 ANC per transaction to prevent excessive fees
1.2 Base Fee Adjustment Algorithm
Target block utilization: 50%
Maximum base fee adjustment per block: ±12.5%
Base fee is burned permanently, reducing circulating supply
2. Fee Distribution
All collected transaction fees are distributed as follows:
3. Validator Incentive Structure
3.1 Block Reward Distribution
Block Proposer: 15% of total block fees
Active Validators: 55% of total block fees, distributed proportionally to stake weight
Reward Distribution: Automatic at the end of each epoch (2 days)
3.2 Staking Rewards
Validators earn staking rewards proportional to their stake and uptime:
Uptime requirement: ≥99% for full rewards
Rewards reduced linearly for uptime below 99%
No rewards for uptime below 90%
Rewards compound automatically at the end of each epoch
3.3 Unbonding Rules
Stake unbonding period: 28 days (14 epochs)
No rewards earned during unbonding period
Early unbonding penalty: 10% of staked amount
4. Long-Term Sustainability
After the 50-year vesting period completes:
All validator incentives will be fully funded by transaction fees
No inflationary block rewards will be required
The burn mechanism will create mild deflationary pressure over time
The network will be fully self-sustaining without reserve funds
5. Governance Adjustment
All fee parameters and incentive structures may be adjusted via governance proposal, subject to 67% validator approval threshold. Core monetary policy (total supply, vesting schedule) may never be adjusted.