SFS Frequently Asked Questions

What is Sequencer Fee Sharing (SFS) in Mode Network?

SFS in Mode Network is a mechanism that allows developers to earn a portion of the network's sequencer fees. By registering their smart contracts with the SFS contract, developers can receive a share of the fees generated from transactions involving their contracts.

Can an NFT accrue the revenue of more than one contract?

Yes, with the assign function. This function is used to link a smart contract to an existing SFS NFT. This is particularly useful for dApps with multiple contracts, allowing them to accumulate revenue from all contracts under a single NFT, simplifying the fee collection process.

Is there a minimum to claim the fees?

Yes, there is a minimum and it's 0.01 ETH . This way developers can accumulate during more than one epoch until they reach this number.

Can a contract be registered multiple times in the SFS?

No, each smart contract can only be registered once in the SFS. This ensures a clear and unambiguous link between a contract and its corresponding NFT for fee collection.

What is the role of the NFT in SFS?

In SFS, the NFT functions as a digital certificate, signifying the holder's right to claim fees accrued by a specific smart contract. It's a unique representation of ownership and fee entitlement, linked directly to the contract's activity.

What is the process to register a contract in the SFS?

To register a contract in the SFS, developers must call the register function from within their smart contract. This action mints an NFT, which serves as a token of ownership and entitlement to the fees generated by the contract's usage.

How often are fee balances updated in the SFS?

In the SFS, fee balances are updated every first day of the month on the mainnet and every 24 hours on the testnet. This periodic update reflects the accumulation of fees generated by the registered contracts.

Who can withdraw earned fees from the SFS?

Withdrawal of earned fees is restricted to the holder of the SFS NFT linked to the smart contract. This can be either an Externally Owned Account (EOA) or a smart contract, provided they possess the NFT at the time of withdrawal.

What happens if the withdrawal amount exceeds the earned fees?

If the requested withdrawal amount exceeds the available earned fees, the system automatically adjusts the withdrawal to the maximum available amount. This ensures that withdrawals are always within the bounds of the actual fees accumulated by the contract.

What is the difference between registering and assigning in the SFS?

The key difference between registering and assigning in the Sequencer Fee Sharing (SFS) system lies in the purpose and outcome of each action.

  • Registering a Contract: When you register a contract in the SFS, you are essentially initiating its participation in the fee-sharing mechanism. This process involves calling the register function from your smart contract, which results in the minting of a unique NFT. This NFT serves as a token of ownership and entitlement to the fees generated by the contract's usage. Registration is a one-time process for each contract, establishing its link to the SFS and enabling it to start accumulating fees.

  • Assigning a Contract: Assigning, on the other hand, is the process of linking a smart contract to an already existing SFS NFT. This action is performed using the assign function and does not involve minting a new NFT. Instead, it allows the fees generated by this contract to be accumulated under the NFT specified in the assignment. This is particularly useful for developers who manage multiple contracts and wish to consolidate their fee earnings under a single NFT, simplifying the management and collection of fees.

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