Creators Fee

Published by Mario Oettler on

A blockchain can be seen as a public good. Nobody can be excluded from using it. But somehow, a blockchain needs to be maintained. Code updates are necessary, improvement proposals need to be discussed and edited, research in safety issues and improvements needs to be done, etc. This is not for free. But neither block reward nor transaction fee pay for this service.

That’s why some blockchains design the transaction fee in a way that a certain fraction of the fee goes to a creator’s account. From this account, developers are paid. While this seems like a good idea, it endows the owner of this account with massive power. He can afford more coders, more public relations, and more researchers to implement his ideas than other users can do. This might result in centralization.