Native Swap VS Other Transactions

    Terra Block Chain uses POS as Consensus method and rewards those who Stake Luna for the security and Stability of network. where that reward come from? transaction fees! i'm sure you noticed that every transaction that you are sending has a fee associated with it. these fees stack at a reward pool and validators distribute them between lunatics that delegated their luna in their nodes.

    In this Bounty we were asked to show how different are the rewards coming from Native swaps (swap between Luna and Terra stable coins) and Other transaction. As for methodology, I decided to Compute Number of transactions and Amount paid for fees In both Swaps and Transactions table. But of course I subtracted former from later. this is how the results work!

    Loading...
    Loading...
    Loading...

    First of all I should mention that I had to eliminate two weeks in between because fee amount on that period was unusually high and made it impossible to see the chart on a suitable scale. AFA I'm concerned those data can be wrong. But aside from that, we can see that Number of Weekly transactions are rising steadily, But this mild uptrend doesn't result in a clear uptrend in total fee amount. although it is argued that as more people come to terra and more transactions happen means more reward for Luna stakers but this needs further elaboration since number of stakers can change and also Volume of transaction matters in terms of fees; as it is evident in chart below that volume has a greater impact on fee amount.

    Loading...

    As for other Transactions, we still can see a uptrend in Number of transactions but this time fee amount is clearly following a downtrend which can relate to Volume once again (although it is not easy to query and compute volume amount for these type of transactions). One other reason for this downtrend can be recent changes in fee payments which effected non-swap transactions and completely dismissed tax rate fee from Jan 6th.

    Loading...
    Loading...
    Loading...

    mass adoption has a huge impact on fee rewards for luna stakers, but more than quantity it is the quality (security of network eg) that determine their rewards. some percentage (more than 0.5% of transfer) should be paid for fees and this means as more people become more confident in security of terra blockchain, more of high amount transactions will happen and more rewards will be distributed for Luna stakers.