Myria Protocol Fees
Let’s start by answering one common question. Protocol fees are not gas fees. What’s the difference?
Gas fees and protocol fees are both types of fees associated with processing transactions on a blockchain network. However, they are distinct concepts with different implications.
Gas fees are usually paid in the native token of a blockchain, ETH for Ethereum, MATIC for Polygon, etc. These fees are used to pay the network validators and often serve as the main source of revenue for the blockchain. Gas fees are determined by the number of computational resources needed to complete the transaction, as well as the current level of demand for those resources on the network. While they might seem necessary, gas fees also add the subtle requirement for all participants to own at least a small amount of the native token. This has some benefits for the network but for most users and developers it’s mostly a nuisance. Without gas fees, you’ll no longer have to double-check if your wallet has the necessary amount for a transaction to go through.
This leads us to protocol fees. Unlike gas fees, they don’t have to be paid in the native token. Blockchain protocol fees are the costs associated with processing transactions on a blockchain network. When a user sends a transaction on a blockchain network, they are essentially paying for the use of the network’s resources, including storage, bandwidth, and computing power. Additionally, protocol fees help to prevent spam and other malicious activities on the network. By requiring users to pay for the use of network resources, blockchain networks discourage bad actors from flooding the network with unnecessary transactions.
We believe that charging a small percentage fee instead of a flat one will ensure that the Myria platform is friendly for NFTs that are priced in the low to medium range. The same wouldn’t be possible with a flat fee. For example, most NFT/ ERC721 transactions on Ethereum cost over $5–10 (depending on traffic). If you want to buy a digital asset that costs $5, you’ll essentially have to pay double or triple the price. On Myria, it’ll be merely $0.10. More than 250 projects are already building on the Myria blockchain and numerous collections are currently on the Myria NFT marketplace. As more projects near completion, the number of NFT collections will gradually increase.
What happens with those protocol fees? As mentioned above, protocol fees prevent spam attacks and revenue goes toward keeping the network functional and secure. A portion of protocol fees will also be swapped into MYRIA tokens and added to the community growth treasury for initiatives such as staking and trading rewards.
Conclusion
Blockchain protocol fees are an essential component of the Myria ecosystem, as they help ensure the security and reliability of the network, and directly contribute to the growth of the Myria platform. By paying fees, users incentivize Myria network validators to process transactions and help prevent spam and other malicious activities on the network. Myria’s percentage fee allows users to trade assets without the need to own a certain amount of native tokens, facilitating the whole process and making it more convenient for all parties involved.
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