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Updated "Fees" document based on the PR feedback

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Ana Loznianu 2022-03-30 11:10:05 +03:00
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@ -5,13 +5,17 @@ description: The Ocean Protocol defines various fees for creating a sustainabili
## Path to sustainability
Ocean Protocol is a community-driven project. Through OceanDAO, the project aims at achieving decentralized governance and sustainability loop. For the project to grow and improve, the participants are rewarded for their contributions. The Ocean Protocol's smart contracts include a fee mechanism to maintain the sustainability loop.
Ocean Protocol achieves sustainability via the [Web3 sustainability loop](https://blog.oceanprotocol.com/the-web3-sustainability-loop-b2a4097a36e).
- The project grows and improves through the efforts of OceanDAO grant recipients.
- The OceanDAO votes to decide which proposals receive grants.
- Grant funds are sourced from the Ocean Protocol community treasury.
- The Ocean Protocol community collects fees when users interact with the protocol, thus completing the sustainability loop.
## Fee types
### Swap fee
Swap fees are collected whenever someone swaps a datatoken for base token (e.g., OCEAN) or base token for datatoken. The swap could be inside a pool (using an automated market maker) or in a fixed-rate exchange.
Swap fees are collected whenever someone swaps a datatoken the base token (e.g., OCEAN) or base token for a datatoken. The swap could be inside a pool (using an automated market maker) or in a fixed-rate exchange.
These are the fees that are applied whenever a user swaps base token or datatoken:
- Publisher Marketplace swap fee
@ -21,17 +25,17 @@ These are the fees that are applied whenever a user swaps base token or datatoke
### Publish fee
Publish fees will be charged to a publisher when they publish an asset.
Publish fees can be charged to a publisher when they publish an asset.
Currently, no fees are applicable in Ocean's default marketplace. However, it is possible to charge a publishing fee in the custom marketplace by adding an extra transaction in the publish flow.
Currently, the Ocean marketplace does not charge a publishing fee. Custom marketplaces can charge a publishing fee by adding an extra transaction in the publish flow.
Based on the use case of the marketplace, the marketplace owner can decide if this fee should be charged or not.
### Consume fee
Consume fee is charged when a user holding datatoken exchanges it for a compute service, downloading a data asset or an algorithm.
Consume fees (aka. Order fees) are charged when a user holding a datatoken exchanges it for the right to download an asset or to start a compute job that uses the asset.
The following fees apply to the consumption of data assets as a part of Consume fee:
These are the fees that are applied whenever a user consumes an asset:
- Consume Market Consumption Fee
- Publisher Market Consumption Fee
@ -40,19 +44,21 @@ The following fees apply to the consumption of data assets as a part of Consume
### Ocean Community fee
Ocean's smart contract collects the **Ocean Community fee** during a swap operation. These fees are reinvested in community projects via Ocean DAO and other initiatives. Currently, this fee is set to 0.1% (as long as either Ocean or H20 are used as the base token in the market) in the smart contract but can be updated by the Ocean Protocol foundation.
Ocean's smart contracts collect **Ocean Community fees** during swap and order operations. These fees are reinvested in community projects via OceanDAO and other initiatives.
Whereas a fee of 0.2% is applicable on all swaps using another token as the base token.
For swaps involving approved base tokens like OCEAN and H2O, the Ocean Community swap fee is 0.1%. For swaps involving other base tokens, the Ocean Community swap fee is 0.2%. The Ocean Community order fee is 0.3 DT per order operation.
These fees can be updated by the Ocean Protocol Foundation.
### Provider fee
Provider is a component of Ocean Protocol's ecosystem which facilitates data consumption, starts compute jobs, encrypts DDOs, and decrypts DDOs. Provider also validates if the user can access a particular data asset or service. To know more about Provider, click [here](https://github.com/oceanprotocol/provider).
Provider is a component of Ocean Protocol's ecosystem that facilitates data consumption, starts compute jobs, encrypts DDOs, and decrypts DDOs. Provider also validates if the user can access a particular data asset or service. To learn more about Provider, click [here](https://github.com/oceanprotocol/provider).
Provider fees are paid to the individual or organization running their Provider instance whenever a user consumes a data asset or swaps a datatoken for a base token. These fees can be set to an absolute amount, and the receiver can also decide which token to receive the fees in - they don't have to be in the same currency used in the consuming market.
Provider fees are paid to the individual or organization running their Provider instance when the user orders an asset. These fees can be set to an absolute amount, not as a percentage. The provider can also specify which token the fees must be paid in - they don't have to be the same token used in the consuming market.
Provider fee can also be used to charge for computing resources. Based on the compute resources needed to run an algorithm in the Compute-to-Data environment, a consumer can choose the amount to pay according to their needs.
Provider fees can also be used to charge for computing resources. Based on the compute resources needed to run an algorithm in the Compute-to-Data environment, a consumer can choose the amount to pay according to their needs.
This fee incentivizes individuals and organizations to run their provider instances and charge consumers according to resource usage.
These fees incentivize individuals and organizations to run their provider instances and charge consumers according to resource usage.
## Fee values