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RIP-301: Fee-Funded Node Payouts & Liquidity — On-Chain Revenue Model #268

@Scottcjn

Description

@Scottcjn

Summary

Bridge fees from wRTC transactions on Solana (and upcoming Base L2) should fund node operator payouts and liquidity pools — making the network self-sustaining without drawing from the community fund.

Fee Split Model

Every wRTC bridge transaction (deposit/withdrawal) generates a 0.5 RTC fee. These fees are split:

Allocation % Purpose
Liquidity Pools 40% Fund Raydium (Solana) + Aerodrome/Uniswap (Base) LP positions
Node Operator Payouts 40% Weekly rewards for attestation node runners (see #267)
Community Fund 20% Replenish founder_community for bounties and development

How It Works

Revenue Flow

User bridges RTC ↔ wRTC
       ↓
  0.5 RTC fee collected
       ↓
  ┌─────────────┬─────────────┬─────────────┐
  │  40% → LP   │ 40% → Nodes │ 20% → Fund  │
  │  (0.20 RTC) │  (0.20 RTC) │  (0.10 RTC) │
  └─────────────┴─────────────┴─────────────┘

Self-Sustainability Threshold

  • Node payout target: 100 RTC/week per node (per Run a RustChain Node — Earn 100 RTC/Week #267)
  • At 3 nodes: Need 300 RTC/week for nodes = 750 RTC total fees/week
  • That's ~1,500 bridge transactions/week (1,500 × 0.5 = 750 RTC)
  • At 1,000 tx/week: 500 RTC fees → 200 RTC to nodes (covers 2 nodes)

Revenue Sources (Both Chains)

  1. Solana wRTC Bridge (LIVE) — bottube.ai/bridge

    • Raydium pool: 8CF2Q8nSCxRacDShbtF86XTSrYjueBMKmfdR3MLdnYzb
    • 0.5 RTC withdrawal fee already in place
  2. Base L2 wRTC Bridge (PLANNED) — see Base bridge plan

    • Aerodrome/Uniswap liquidity
    • Same 0.5 RTC fee structure
    • ~$0.01 gas per tx on Base

Scaling Table

Weekly Bridge TXs Total Fees → Liquidity → Nodes → Fund Nodes Supported
100 50 RTC 20 20 10 0 (supplement from fund)
500 250 RTC 100 100 50 1 node
1,000 500 RTC 200 200 100 2 nodes
2,500 1,250 RTC 500 500 250 5 nodes
5,000 2,500 RTC 1,000 1,000 500 10 nodes

Implementation

  1. Fee collection: Already happens in wrtc_bridge_blueprint.py (0.5 RTC withdrawal fee)
  2. Fee wallet: Create fee_pool wallet to collect all bridge fees
  3. Weekly settlement: Cron job splits fee_pool balance 40/40/20
  4. Node payouts: Automated weekly transfer to registered node operators
  5. LP deposits: Manual or semi-automated LP position management

Phase 1 (Now — Before Self-Sustaining)

Phase 2 (1,000+ bridge tx/week)

  • Switch node payouts to fee-funded
  • Community fund only supplements shortfall
  • LP positions managed from fee revenue

Phase 3 (5,000+ bridge tx/week)

  • Fully self-sustaining — zero draw from community fund
  • Node operators earn from network activity
  • LP depth grows organically

Related Issues

Labels

tokenomics, enhancement, node-incentive

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