How much does it cost to use RAILGUN?
How much does it cost to use RAILGUN?
There are two fee types in the RAILGUN privacy system:
Shield and Unshield Fees (0.25% of transaction amount)
Relayer Fees (does not scale with transaction amount and is dependent on gas price)
Shield and Unshield Fees
The protocol takes a 0.25% fee on all transactions which include a Shield or Unshield action. Shield and Unshield fees are collected by the DAO Treasury and distributed over time to RAIL stakers in the form of Active Governors Rewards.
The protocol does not take any additional fees outside of Shield and Unshield Fees.
Relayer Fees
RAILGUN uses a distributed network of Relayers to submit transactions on users' behalf, which is integral to obscuring transaction and user information. Relayers charge a % premium of the overall gas price for the transaction and not the transaction amount. Thus, Relayer Fees do not change with transaction size.
As RAILGUN transactions are gasless (users do not need ETH/MATIC/BNB to send transactions once assets are shielded), Relayer fees also contain the underlying blockchain's gas fee converted to whatever asset users are transacting in. For example, if you are sending DAI on the Ethereum blockchain, then the Relayer Fee (which also contains the blockchain transaction gas fee) is paid entirely in DAI and you do not need to hold/spend ETH in your 0zk address.
Therefore, Relayer Fees vary depending on:
What chain you are using RAILGUN on
Gas price at the time of the transaction
What % of the gas fee Relayers decide to charge as an additional premium
Relayer Fees are up to the individual Relayers themselves, but generally they are 10% of the total gas price added as a premium. This 10% can vary depending on the Relayer configuration and Relayers that set lower fees will naturally receive more transactions.
This creates a competitive fee market for Relayer services as users and the market decide on acceptable fees in real time.
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