Reward Manager

Overview

The Reward Manager allows you to control how transaction fees are handled in your network. You can:

• Send fees to a specific address (e.g., treasury)
• Allow validators to collect fees
• Burn fees entirely

Configuration

You can activate this precompile in your genesis file:

{
  "config": {
    "rewardManagerConfig": {
      "blockTimestamp": 0,
      "adminAddresses": ["0x8db97C7cEcE249c2b98bDC0226Cc4C2A57BF52FC"],
      "initialRewardConfig": {
        // Choose one of:
        "allowFeeRecipients": true,  // Allow validators to collect fees
        "rewardAddress": "0x...",    // Send fees to specific address
        // Empty config = burn fees
      }
    }
  }
}

Reward Mechanisms

The Reward Manager supports three mutually exclusive mechanisms:

1. Validator Fee Collection (allowFeeRecipients)

   • Validators can specify their own fee recipient addresses
   • Fees go to the block producer's chosen address
   • Good for incentivizing network participation

2. Fixed Reward Address (rewardAddress)

   • All fees go to a single specified address
   • Can be a contract or EOA
   • Useful for treasury or DAO-controlled fee collection

3. Fee Burning (default)

   • All transaction fees are burned
   • Reduces total token supply over time
   • Similar to Ethereum's EIP-1559

Interface

interface IRewardManager {
  event RewardAddressChanged(
    address indexed sender,
    address indexed oldRewardAddress,
    address indexed newRewardAddress
  );
  event FeeRecipientsAllowed(address indexed sender);
  event RewardsDisabled(address indexed sender);

  function setRewardAddress(address addr) external;
  function allowFeeRecipients() external;
  function disableRewards() external;
  function currentRewardAddress() external view returns (address rewardAddress);
  function areFeeRecipientsAllowed() external view returns (bool isAllowed);
}

The Reward Manager precompile uses the AllowList interface to restrict access to its functionality.

Best Practices

1. Reward Management:

   • Choose reward mechanism based on network goals
   • Consider using a multi-sig or DAO as reward address
   • Monitor fee collection and distribution
   • Keep documentation of fee policy changes

2. Security Considerations:

   • Use multi-sig for admin addresses
   • Test reward changes on testnet first
   • Monitor events for unauthorized changes
   • Have a plan for reward parameter adjustments

Implementation

You can find the Reward Manager implementation in the subnet-evm repository.

Interacting with the Precompile

For information on how to interact with this precompile, see:

• Interacting with Precompiles
• Reward Manager Console