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  1. Core Advantages

Revenue

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Last updated 5 months ago

Chains earn more revenue on NodeKit. Chains earn all sequencing revenue, share in the cross-chain transaction fees originating from or going to their chain, and can elect to earn through MEV, though protective measures can be taken to prevent MEV. It is a core value of NodeKit that chains retain all prior revenue sources while unlocking the ability to earn more through MEV and cross-chain transactions in order to ensure sovereignty.

Chains can monetize on MEV by selling the right to build blocks for their chain. This is done through a similar mechanism to proposer-builder separation (PBS). On Ethereum, the builder includes a payment to the validator in the block and changes the fee recipient to their own address which is where the builder makes their profit. A similar mechanism is used to distribute the rewards for the cross-chain top-of-block fees across participating chains.

Fees generated by cross-chain interactions are distributed pro-rata to the involved chains. This mechanism allows chains to be fairly compensated for the revenue they generate through cross-chain activity generated on their chain, rather than leaking that value out to bridges.