protocol-fees.md

Protocol Fees

• Registering a new Record
• Creating a new License from a record

At first, these two actions will be free for data provides (only Staking is Required), until a critical mass of assets and applications will incentivize data provider to add a "tip" to validators to include their registrations.

Staking ensures the protocol can penalize oracles for mis-handeling records or funds, and the immutable nature of the protocol data model allows for tracking the performance of each Data and Payment Provider.

Once a critical mass of assets are being monetized on the network, creating Original Works Records and Licenses will require a payment fee in $OWN token in order to cover the cost of parsing, ingestion and cross reference of records by the network validators.

Until this mechanism is activated, staking $OWN will suffice for creation of new Records and Licenses, and the protocol emissions of new tokens will cover the validator costs.
This ensures a decentralized cross-chain registry that prevents conflicting claims both in the early days of the network.

• Tokenizing a License will bare a "tokenization fee" that will be based on the specific network in which the network fee + tip + provider fee
  • the Network fee will be determined by the governing committee per each network.
  • the tip will be determined by network congestion as a mechanism for faster inclusion.
  • the provider fee Payment provider may add their fee on top using a this native premetive.
    • Rights holders will pay the Payment Provider the total tokenization fee for bringing their cashflows on-chain, while OW will earn 70% of the network fee
    • Validators will earn 30% of the network fee + the tip component
    • provider fee will be pocketed by the Payment Provider.
• Submitting a Royalty Claim
• Submitting a Royalty Payment
• Creating a Royalty Pack
• Queering the network for a ZKproof about a license statement

\