Transaction Fees

This guide explains how transaction fees work on Monolythium.

Fee Model

Monolythium uses a 90% burn / 10% distribute fee model:

Portion	Destination	Purpose
90%	Burned permanently	Deflationary pressure
10%	Stakers	Incentivize network security

This model creates deflationary pressure as network usage increases, while still rewarding validators and delegators.

Fee Calculation

Transaction fees are calculated as:

Fee = Gas Used × Gas Price

Where:

• Gas is the computational cost of executing the transaction
• Gas Price is the amount of LYTH per unit of gas you're willing to pay

Gas Limits

Transaction Type	Typical Gas
Native transfer	~65,000
EVM transfer	~21,000
Contract deployment	100,000 - 5,000,000+
Contract interaction	30,000 - 500,000+
Delegate/Undelegate	~200,000
Vote on proposal	~100,000

Minimum Gas Price

The network enforces a minimum gas price to prevent spam:

Minimum: 0.025 alyth per gas unit

!!! note "Gas Price in LYTH" 0.025 alyth = 0.000000000000000025 LYTH

A typical transfer costs approximately 0.0000016 LYTH.

EVM vs Cosmos Fees

Aspect	EVM Transactions	Cosmos Transactions
Fee unit	Wei (ETH-style)	alyth
Gas estimation	eth_estimateGas	--gas=auto
Fee payment	Sender's ETH balance	Sender's LYTH balance

Both use the same underlying fee burn mechanism.

Setting Fees

MetaMask (EVM)

MetaMask suggests gas prices automatically. You can adjust:

• Gas Limit: Maximum gas to use
• Max Fee: Maximum total fee willing to pay
• Priority Fee: Tip for faster inclusion

Cosmos CLI

monod tx bank send <from> <to> <amount>alyth \
  --gas=auto \
  --gas-adjustment=1.5 \
  --gas-prices=0.025alyth

Parameters:

• --gas=auto: Estimate gas automatically
• --gas-adjustment=1.5: Buffer for estimation variance
• --gas-prices=0.025alyth: Price per gas unit

Fee Burn Mechanism

When a transaction is processed:

1. Total fee is deducted from sender
2. 90% is sent to a burn address (permanently removed from supply)
3. 10% is added to the fee pool for stakers

This creates continuous deflationary pressure proportional to network activity.

Burn Address

mono1qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqnrql8a

Tokens sent here are permanently unspendable.

Fee Market Dynamics

During high network usage:

• Block space becomes competitive
• Users bid higher gas prices for faster inclusion
• More fees burned = stronger deflationary pressure
• Staker rewards increase

During low usage:

• Minimum gas price ensures baseline security
• Lower burn rate
• Supply impact is minimal

Estimating Fees

CLI

# Simulate transaction to get gas estimate
monod tx bank send <from> <to> <amount>alyth \
  --gas=auto \
  --dry-run

RPC

# EVM estimation
curl -X POST -H "Content-Type: application/json" \
  --data '{"jsonrpc":"2.0","method":"eth_estimateGas","params":[{...}],"id":1}' \
  https://rpc.sprintnet.monolythium.com:8545

Fee Grants

Cosmos SDK supports fee grants, allowing one account to pay fees for another:

# Grant allowance
monod tx feegrant grant <granter> <grantee> \
  --spend-limit 1000000000000000000alyth \
  --from <granter>

# Use grant when sending
monod tx bank send <grantee> <to> <amount>alyth \
  --fee-granter <granter> \
  --from <grantee>

This enables:

• Onboarding new users without LYTH
• Subsidizing specific operations
• Application-sponsored transactions

FAQ

Why is 90% of fees burned?

High burn rate creates deflationary pressure, potentially increasing LYTH value for holders as usage grows. It also prevents fee extraction attacks.

Can fees ever be zero?

No. The minimum gas price prevents spam and ensures validators are compensated.

Do validators choose which transactions to include?

Validators include transactions from the mempool, typically prioritizing higher fee transactions when blocks are full.

How do I know if my fee is high enough?

Use --gas=auto with a reasonable gas price (0.025+ alyth). Transactions with the minimum gas price are typically included quickly on Monolythium due to 2-second block times.