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How Do Transaction Fees Get Distributed in a Proof-of-Activity System?

Similar to block rewards, transaction fees in a Proof-of-Activity system are typically split between the miner who includes the transactions in a block and the validators who approve the block. The specific distribution of transaction fees is determined by the protocol of the blockchain.

This sharing of transaction fees helps to create a more balanced incentive structure, where both miners and validators are rewarded for their contributions to the network. As with block rewards, the goal is to encourage participation from both groups to ensure the security and stability of the network.

How Does a “Chain Split” Occur and How Is It Resolved by the Longest Chain Rule?
What Is the Primary Incentive for a Bitcoin Miner to Include Transactions in a Block?
How Are Validators Selected in the Proof-of-Stake Phase of Proof-of-Activity?
How Does the ‘Fee Structure’ Differ between a Centralized Exchange (CEX) and a Decentralized Exchange (DEX) AMM?