Proposing to Burn Transaction Fee To Make Shiden Deflationary

Shiden is the experimental network for Astar like Kusama for Polkadot. Hence, we need to test as many features as possible on Shiden first before on Astar.

One of the most important things we need to test out is its token economics. Shiden’s inflation is very needed because of dApp staking. However, too much inflation is not needed for all stakeholders. The important thing is to find the best balance.

Discussion Topic in This Thread
Currently, 100% of the transaction fee goes to collators. Here are some discussion points

  • Should we burn transaction fees or not?
  • If we burn transaction fees, how much % should we burn per each transaction?
  • Should we change our block reward distribution and increase the amount for collators?

I like the idea of hiring more devs to start building more stuffs

I support this proposal 100%

burn transaction fees like ETH where the percentage is just enough to make the coin deflationary. Based on how many coins are produced in a block.

Don’t see a need to change the rewards distribution. The value of shiden would grow with the burn. So they will get more.


i am very glad to hear it :fire::fire::fire:
two digit and new ATH very soon :rocket::rocket:


+1 lets go tu burn … dapp staking will generate this own value

Burn a % if the fees is ok. Maybe 30%.
But I would rather think on use those fees in order to develop the project, incentive new dapps or even finance some training on how to develop dapps and better understanding of Astar/shiden for the holders.

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Make a poll … 100% agree, burn SDN ON EVERY TX … 80% fees burned… other networks had do it with success results for the network like ETHEREUM … Block reward its fine, give more to developers to keep attractive for new developers … 4:1 its fine … gas burn make attractive to holders and investors.

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before positioning, does shiden have enough cash to save his kusama lease in 48 weeks?
Transaction fees can provide a very attractive reward when renewing. You have to think about it because the competition will be strong in 48 weeks, and some projects will be scary.

personally I will be weighted:
10% cash
25% Build2Earn
65% burn


Burn 80% of tx fees. 20% into treasury in case needed for the future.

Introduce vesting for dapp staking.

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This won’t be happend. We need some incentives for collators.

Will a poll for this be created?

All 100%

  1. burn transaction fees - 60%
  2. collators - 20%
  3. next rent kusama parachain - 10%
  4. extra bonus for the building program (popular projects in the top 200 with coinmarketcap) - 10%
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As an investor/holder (not developer) who understands the breakthrough development tech potentials of SDN and DOT ecosystem, I’d like to see something that balances rewards for developers and holders who purely invest. I want to ensure the $$$$ I give to SDN and development is used wisely, those who deserve development rewards are rightly rewarded, those devs who squander funds or miss milestones are cut off, and Holders are rewarded for their time and funds.

-Token Burn to lower overall available coins (increase rarity/value).

-Transaction % burn (undecided %) on Buy/Sell/Swap/Send to further decrease available coins and increase value. Incentivizes Holding, rewards both long-term Holders and Developers coffers.

-Base rewards for developers (living wage to focus 100% on development)

-Bonus reward developers who meet/exceed development milestones, release groundbreaking/cutting edge tech. Public vote for ‘hottest tech / achievements’. Dev teams receive bonus SDN pools for going above and beyond. Incentivize the hardest working devs outputting the best tech, making the best use of funds. Ensures Holders are holding valuable assets in SDN, funds not squandered.

-Reward SDN investors/holders by incentives…

  • Staking % increase
  • Receiving % of all Buy/Sell/Swap/Send transaction fee coin burns paid back in SDN (maybe 5% SDN reflected back to all Holders for any network transaction).

I’m just thinking out loud here and hope some my feedback makes sense and is hopefully helpful. With regards to actual % I will leave that up to Sota and the folks who know much more about the inner workings of SDN, transaction and usage estimates, current supply, optimal supply for burn & allocations for treasury requirements, etc.

Thank you for reading this! Proud to hold SDN (and keep stacking) and hope to do so for many years before finally cashing in some of the rewards. Looking forward to some cutting edge tech resulting from this ecosystem.


In Shiden currently transactions fees very low, we will not have the same deflationary effect what we can see e.g. on Ethereum. I think that first need to increase number of transactions and only when we have huge numbers we can think about burning some % of fees.

Also about block reward distribution, I think currently proportion looks good, but if we have crowd staking in the future we also should think about increasing rewards for collators, because dApp stakers can have additional rewards from dApp operators and it will not be so interesting to run a collator compare to just stake on favorite dApp.

I agree burning transaction fee may sound nice… but it’s too small to make it deflationary.

But I guess team might need to investigate on the source of this drop to better give a solution.

  1. Whether is it really lockdrop ?
  2. Whether is it dapps

Also the treasury needs to build their own ksm. Cos the second round of leasing will be tough if there are not enough supporters and treasury doesn’t have enough to fund half of the ksm required.

That would be worst


Thanks for all comments. As everyone knows, people love burinig. But the thing we have to discuss here is the % and the reason why that % instead of emotional comments.


This is my proposal.

50% burn
25% to collators
25% to treasury

What happens to the treasury, we can decide by doing a monthly vote.


It’s time for us to make SDN great again!


do we need a fee for treasury? At this moment, 40% of the block reward goes to the treasury.

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I hope the idea of a variable burn rate based on how many coins are produced in a block to just barely make sure it’s deflationary like what ETH is doing is discussed more. I don’t see the replies discussing it.

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