Shared Fees and Reward Economics of Common

Fees and rewards are included within Common so the privacy-based ecosystem is safeguarded—and in such a manner to incentivize network members to participate with each other. It works as follows:

Common Fee Structure

Fees take two predominant types on the platform.

1. Shielding and Unshielding Fees

Moving assets both within and out of shielded pools comes with related charges.

Fees are paid to Aleph Zero's zkOS relayers and relayer nominators.

Fee rates have not been defined yet, but unshielding should be a bit more expensive in order to incentivize users to keep their assets shielded.

Assets in the shielded pool enhance the privacy of all users, as a higher TVL expands the anonymity set and strengthens privacy protections.

2. Smart Yield Fees

Smart Yield carries fees—these are on top of the fees generated by yield-earning strategies themselves.

Smart Yield will be accessed privately where users will incur lower fees; thus, this is the preferred method.

The distribution of rewards to CMN stakers takes place through the rewards system.

Rewards System

Common's economy benefits network participants with two streams of rewards:

1. Relayer and Relayer Nominator Rewards

Relayers can earn part of the shielding/unshielding fees generated either on their own or by nominating others.

Fees are collected via shielded tokens being swapped for AZERO—with rewards paid out in AZERO.

Individual rewards are calculated on a prorated basis according to the overall share of total assets locked in the relayer system and the volume of transactions processed.

2. Smart Yield Staking Rewards

For users to earn rewards from Smart Yield, they must stake CMN.

Rewards are distributed daily and are based on the total amount each participant has staked in CMN and the yield their system produces.

This structuring of fees and rewards ensures a sustainable economic model that aligns incentives with privacy, participation, and efficient liquidity management.