F1 Fee Distribution

Authors Dev Ojha, Christopher Goes

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Author Details

Dev Ojha
  • Tendermint, Berkeley, CA, USA
  • UC Berkeley, CA, USA
Christopher Goes
  • Tendermint, Berlin, Germany

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Dev Ojha and Christopher Goes. F1 Fee Distribution. In International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2019). Open Access Series in Informatics (OASIcs), Volume 71, pp. 10:1-10:6, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2020)


In a proof of stake blockchain, validators need to split the rewards gained from transaction fees each block. Furthermore, these fees must be fairly distributed to each of a validator’s constituent delegators. Delegators accrue this reward throughout the entire time which they are delegated, and they have a special operation to withdraw accrued rewards. The F1 fee distribution scheme works for any algorithm to split fees and inflation between validators each block, with minimal iteration, and the only approximations being due to finite decimal precision. Per block there is a single iteration over the validator set, to enable reward algorithms that differ by validator. No iteration is required to delegate or to withdraw. The state usage is one state update per validator per block and one state entry per active delegation. F1 can optionally handle arbitrary inflation schemes, auto-bonding of rewards, and varying validator commission rates.

Subject Classification

ACM Subject Classification
  • Theory of computation → Algorithmic mechanism design
  • Proof of Stake
  • Fee Distribution
  • Cosmos


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  1. Sunny Aggarwal. Cosmos Proof of Stake. Crypto Economics Security Conference 2018, 2018. URL: https://www.youtube.com/watch?v=XxZ04w2x4nk.
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  3. Giulia Fanti, Leonid Kogan, Sewoong Oh, Kathleen Ruan, Pramod Viswanath, and Gerui Wang. Compounding of Wealth in Proof-of-Stake Cryptocurrencies. Arxiv, October 2018. URL: http://arxiv.org/abs/1809.07468.
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