Reward and Fee in Labyrinth

Privacy Guarantees in the Protocol

Privacy guarantees depend on transaction behavior. A small number of deposits and low transaction frequency result in low privacy, while large deposits and high transaction frequency provide high privacy.

Reward Structure

To encourage privacy and anonymity, Labyrinth rewards users with a Shield Score (SS). This score is based on several factors, including:

• Amount deposited

• Duration of the deposit in the system

• Number of transactions conducted after the deposit

Users can later convert their Shield Score into assets to claim rewards.

Two Roles in Labyrinth Privacy

• Privacy Makers: Users who are rewarded for providing liquidity that enhances transaction anonymity.

• Privacy Takers: Users who utilize Labyrinth’s privacy features to conduct transactions

Small deposit of assets and low transaction frequncy creates low privacy guarntee

Big deposit of assets and high transaction frequncy creates high privacy guarntee

Fee Structure

Privacy takers will pay a small fee, typically around 5 basis points (bps), for asset withdrawals or when interacting with DeFi functions such as swapping, staking, yield farming, or other integrations.

Fees for DeFi integrations are determined by the protocols and are optional.

Fee for p2p transaction interactions & DeFi interaction

More details about rewards & fees for P2P transactions and DeFi interactions will be shared soon.