RAILGUN Deductions

Protocol Deductions

For Shielding and Unshielding, the smart contracts take a 0.25% deduction per shield and unshield transaction which is then sent to the DAO “treasury address”. Protocol deductions are distributed to RAILGUN decentralized governance participants over time to RAIL stakers in the form of Active Governor Rewards.

Broadcaster Premiums

To use RAILGUN, users can supply a Broadcaster to facilitate their interactions (users can self-relay interactions if they want to save on gas). Broadcasters require a % premium of the overall gas price for the interaction, but not for the interaction amount. Thus, Broadcaster Premiums do not increase with interaction size.

As RAILGUN interactions are gasless (users do not need ETH/MATIC/BNB to send interactions once assets are shielded), broadcaster premiums contain the underlying blockchain's gas converted to whichever token that users are transacting in. For example, if you are sending DAI on the Ethereum blockchain, then the Broadcaster Premium (which also contains the blockchain interaction gas) is sent entirely in DAI and you do not need to hold/spend ETH in your 0zk address.

Therefore, Broadcaster Premiums vary depending on:

• Which chain you are using RAILGUN on

• Gas price at the time of the interaction

• What % of the gas Broadcasters decide to require as an additional premium

Premiums are broadcast across the Waku P2P network and are only needed if users decide to send the interaction and consider the premium & gas to be acceptable. Broadcaster Premiums are up to the individual Broadcasters themselves, but generally they are ~10% of the total gas.

Broadcasters compete to provide the lowest premiums.