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Sustaining Ergo Mining: Revenue Streams Beyond Emissions#

As Ergo's emission schedule is set to conclude around the year 2045, questions naturally arise about the mechanisms that will incentivize miners to continue securing the network. Fortunately, Ergo's architecture includes support for a variety of revenue streams designed to promote both network growth and long-term sustainability.

Transaction Fees#

While currently modest in size, transaction fees represent a crucial revenue source for miners. The potential for front-running transactions offers additional financial incentives. This cost can be adjusted by miners through on-chain voting

Storage Rent / 'demurrage'#

Storage Rent is active and already providing some (small amount of) income today. See the Storage Rent page for more information.

Sidechain Rewards#

Sidechains in Ergo provide a platform for developers to deploy their decentralized applications (dApps) and blockchain solutions. Miners can secure these sidechains and earn rewards for their contributions. By validating transactions and maintaining the security of sidechain operations, miners play a crucial role in the Ergo ecosystem and generate additional income.

A recent post on the forum in 'A Scalability Plan for Ergo' covers this in more detail.

for incentivizing weak blocks reporting, they can commit to sidechains, thus making fast sidechains possible and miners will get rewards from that.

Bridge Infrastructure#

Bridges facilitate the seamless transfer of assets between different blockchain networks, enhancing interoperability and expanding Ergo's reach. Miners can operate and maintain these bridges, facilitating the secure movement of assets and earning fees in the process. By providing this essential infrastructure, miners contribute to Ergo's functionality and growth while establishing a sustainable revenue stream.

Layer 2 (L2) Infrastructure#

Layer 2 (L2) solutions, such as state channels and sidechains, enhance scalability and improve transaction throughput on the Ergo blockchain. These solutions enable faster and more cost-effective transactions through off-chain processing. Miners can maintain and operate L2 infrastructure, ensuring the smooth functioning of these off-chain solutions and earning fees for their services. By supporting L2 infrastructure, miners contribute to the scalability and efficiency of the Ergo network, attracting more users and generating additional revenue opportunities.

As Ergo continues to evolve and attract a broader user base, the potential for diverse and innovative revenue streams for miners will continue to expand. By actively engaging in these revenue-generating activities, miners not only secure the network but also contribute to the overall growth and success of Ergo.

Note: Stay tuned for updates and announcements from the Ergo community regarding new and emerging revenue streams. These opportunities will be shared to enable miners to make informed decisions and maximize their earning potential.