Skip to main contentFee Incentives
Arkade operators earn revenue through a dual fee structure that aligns their incentives with reliable execution.
Execution fees are collected for offchain transactions in the virtual mempool, while settlement fees are earned when transactions are batched to Bitcoin.
Since settlement fees are shared across many users in each batch, operators are incentivized to aggregate transactions efficiently and maintain high throughput.
This fee model creates positive economic incentives for operators to remain online, process transactions promptly, and avoid censorship that would drive users to competing operators. The recurring revenue from fees provides sustainable economic motivation for honest behavior. Operators who provide reliable service and efficient batching earn higher transaction volumes and associated fees. 
