Definition ∞ Fee distribution refers to the method by which transaction fees collected on a blockchain network are allocated among various participants. This typically includes validators or miners who process transactions, as well as potentially other stakeholders or network treasuries. The specific distribution model can influence network security, participant incentives, and economic sustainability.
Context ∞ The discussion around fee distribution is a central element of blockchain economic design and protocol governance. A key debate concerns optimizing fee structures to balance network security, user costs, and validator profitability. Future adjustments aim to implement more dynamic fee models and ensure equitable compensation for network contributors.
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