# Taiko

**Published by:** [Viktor Sangre](https://paragraph.com/@korsar/)
**Published on:** 2024-01-29
**URL:** https://paragraph.com/@korsar/taiko

## Content

Taiko follows the “decentralized from day 1” approach. Below is the protocol description. Taiko protocol consists of three stages: block proposal, validation, and proving. TLDR:Taiko is a type-1 ZK-EVM, meaning it is Ethereum-equivalent. That is, it implements the Ethereum Yellow Paper specifications;The block execution is deterministic once the block is appended to the proposed block list. That is, all its properties are immutable from that point on;Both proposers and provers are permissionless. Anyone can start and stop running a proposing and proving node whenever they wish;Block metadata is validated when the block is proposed. The prover has no impact on how the block is executed and what the post-block state is;The proof can be generated after the block is checked for validity and its parent block’s state is known.Stage 1: block proposalAnyone can run a Taiko proposer. The Taiko client (proposer) monitors the Taiko network mempool for signed and submitted transactions. L2 tx fee = L2 EIP-1559* base fee + L1 tx fee + prover fee + proposer fee** *By EIP-1559 fee, we mean that the L2 tx fee is split into (i) L2 network fee (base fee) and (ii) payment for the completed work (to provers, proposers, L1).L2 EIP-1559 fee = L2 EIP-1559 tip (goes to the proposer) + L2 EIP-1559 base fee (goes to the Taiko DAO). **Proposer’s work – including and ordering transactions into a block. To this end, the L2 fees (except for the L2 EIP-1559 base fee) are collected into proposer’s account on L2. L1 tx fee and prover fee are paid from their account on L1.So, proposer fee = L2 EIP-1559 tip fee - L1 tx fee - prover fee. The proposer can lose money if the L2 EIP-1559 tip fees are insufficient for the L1 tx fee and prover fee. Once a proposer has collected enough transactions, presumably including and ordering them with the intent to generate a (maximum) profit, they create a block. Profit means that for the proposer, the sum of transaction fees (L2 tx fees) from the block is larger than L1 tx fee + prover fee + EIP-1559 base fee.

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