🖥️Validator Nodes and Their Rights

Each Zone has at least one corresponding validator node responsible for consensus and earning transaction fee revenues. If a transaction is initiated directly on the ME Hub, it will be distributed according to the following principles (for transactions initiated on a Rollup, refer to the Rollup section).

This validator node acts as the execution representative for all ME ID holders (KYC users) within that Zone, automatically receiving the majority of transaction fees associated with every transaction linked to KYC users of this Zone.

For example, if the validator node for the USA Zone is Validator Alpha, and both Alice and Bob are ME ID holders within the USA Zone who initiate transfer transactions on the network, the majority of the transaction fees generated will be received by Validator Alpha (a portion of the fees will enter a global network treasury). If Charlie from the UK Zone initiates a transfer to Alice at this time, the majority of the transaction fee for this transaction will be received by the validator node of the UK Zone.

As a validator node, in addition to network transaction fee income, it also receives funding and rewards from the ME DAO's global network treasury. At the same time, to encourage developers to build applications and Rollup-chains on the ME Network, they will also receive a higher proportion of transaction fee distribution.

Distribution Rules for User-Generated Transaction Fees:

  • 40%: Application (If the transaction does not occur within an application, this 40% also goes into the global network treasury).

  • 30%: Global Network Treasury.

  • 20%: Validator Node of the KYC user's Zone (country/region). (If the transaction is generated by a non-KYC user, it goes to the Zone responsible for block packaging for that transaction).

  • 10%: Association Address.

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