Fees are the virtual fuel needed to power decentralized economies. They act as strong economic incentives to ensure blockchain users behave according to the network rules. In both Proof-of-Work and Proof-of-Stake consensus mechanisms, fees are paid by users based on their block space usage, and are redistributed to actors that guarantee the network security (miners, validators). But variations on how fees are paid, rewarded, distributed, shared and consumed are endless. Over the past few year...

Fees are the virtual fuel needed to power decentralized economies. They act as strong economic incentives to ensure blockchain users behave according to the network rules. In both Proof-of-Work and Proof-of-Stake consensus mechanisms, fees are paid by users based on their block space usage, and are redistributed to actors that guarantee the network security (miners, validators). But variations on how fees are paid, rewarded, distributed, shared and consumed are endless. Over the past few year...