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docs: clarify fee descriptions (dashpay#103)
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* docs: clarify fee distribution

* docs: clarify fee language in more locations
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thephez authored Mar 5, 2024
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2 changes: 1 addition & 1 deletion docs/guide/block-chain-block-chain-overview.md
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Expand Up @@ -22,4 +22,4 @@ Outputs are tied to [transaction identifiers](../resources/glossary.md#transacti

Because each output of a particular transaction can only be spent once, the outputs of a transaction included in the blockchain can be categorized as either an [unspent transaction output](../resources/glossary.md#unspent-transaction-output) or a spent transaction output. For a payment to be valid, it must only use UTXOs as inputs.

Ignoring coinbase transactions (described later), if the value of a transaction's outputs exceed its inputs, the transaction will be rejected---but if the inputs exceed the value of the outputs, any difference in value may be claimed as a [transaction fee](../resources/glossary.md#transaction-fee) by the Dash [miner](../resources/glossary.md#miner) who creates the block containing that transaction. For example, in the illustration above, each transaction spends 10,000 duffs fewer than it receives from its combined inputs, effectively paying a 10,000 duff transaction fee.
Ignoring coinbase transactions (described later), if the value of a transaction's outputs exceed its inputs, the transaction will be rejected---but if the inputs exceed the value of the outputs, any difference in value may be claimed as a [transaction fee](../resources/glossary.md#transaction-fee) to be split between the [miner](../resources/glossary.md#miner) who creates the block containing that transaction and the masternode receiving a reward payout in that block. For example, in the illustration above, each transaction spends 10,000 duffs fewer than it receives from its combined inputs, effectively paying a 10,000 duff transaction fee.
2 changes: 1 addition & 1 deletion docs/guide/block-chain-transaction-data.md
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Every [block](../resources/glossary.md#block) must include one or more [transactions](../resources/glossary.md#transaction). The first one of these transactions must be a [coinbase transaction](../resources/glossary.md#coinbase-transaction), also called a generation transaction, which should collect and spend the [block reward](../resources/glossary.md#block-reward) (comprised of a block subsidy and any transaction fees paid by transactions included in this block).

The UTXO of a coinbase transaction has the special condition that it cannot be spent (used as an input) for at least 100 blocks. This temporarily prevents a [miner](../resources/glossary.md#miner) from spending the transaction fees and block reward from a block that may later be determined to be stale (and therefore the coinbase transaction destroyed) after a block chain [fork](../resources/glossary.md#fork).
The UTXO of a coinbase transaction has the special condition that it cannot be spent (used as an input) for at least 100 blocks. This temporarily prevents [miners](../resources/glossary.md#miner) and masternodes from spending the transaction fees and block reward from a block that may later be determined to be stale (and therefore the coinbase transaction destroyed) after a block chain [fork](../resources/glossary.md#fork).

Blocks are not required to include any non-coinbase transactions, but miners almost always do include additional transactions in order to collect their transaction fees.

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2 changes: 1 addition & 1 deletion docs/guide/mining-pool-mining.md
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Expand Up @@ -16,4 +16,4 @@ The [miner](../resources/glossary.md#miner) then sends to the pool a copy of the

The information the miner sends to the pool is called a share because it proves the miner did a share of the work. By chance, some shares the pool receives will also be below the network target---the mining pool sends these to the network to be added to the block chain.

The [block reward](../resources/glossary.md#block-reward) and transaction fees that come from mining that block are paid to the mining pool. The mining pool pays out a portion of these proceeds to individual miners based on how many shares they generated. For example, if the mining pool's target threshold is 100 times lower than the network target threshold, 100 shares will need to be generated on average to create a successful block, so the mining pool can pay 1/100th of its payout for each share received. Different mining pools use different reward distribution systems based on this basic share system.
The miner portion of the [block reward](../resources/glossary.md#block-reward) and [transaction fees](../resources/glossary.md#transaction-fee) that come from mining that block are paid to the mining pool. The mining pool pays out a portion of these proceeds to individual miners based on how many shares they generated. For example, if the mining pool's target threshold is 100 times lower than the network target threshold, 100 shares will need to be generated on average to create a successful block, so the mining pool can pay 1/100th of its payout for each share received. Different mining pools use different reward distribution systems based on this basic share system.
2 changes: 1 addition & 1 deletion docs/guide/mining.md
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Mining adds new [blocks](../resources/glossary.md#block) to the [block chain](../resources/glossary.md#block-chain), making transaction history hard to modify. Mining today takes on two forms:

* Solo mining, where the [miner](../resources/glossary.md#miner) attempts to generate new blocks on his own, with the proceeds from the [block reward](../resources/glossary.md#block-reward) and transaction fees going entirely to himself, allowing him to receive large payments with a higher variance (longer time between payments)
* Solo mining, where the [miner](../resources/glossary.md#miner) attempts to generate new blocks on his own, with the proceeds from the mining portion of the [block reward](../resources/glossary.md#block-reward) and [transaction fees](../resources/glossary.md#transaction-fee) going entirely to himself, allowing him to receive large payments with a higher variance (longer time between payments)

* Pooled mining, where the miner pools resources with other miners to find blocks more often, with the proceeds being shared among the pool miners in rough correlation to the amount of hashing power they each contributed, allowing the miner to receive small payments with a lower variance (shorter time between payments).

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# Transaction Fees and Change

Transactions pay fees based on the total byte size of the signed transaction. Fees per byte are calculated based on current demand for space in mined blocks with fees rising as demand increases. The [transaction fee](../resources/glossary.md#transaction-fee) is given to the Dash miner, as explained in the [block chain section](../guide/block-chain.md), and so it is ultimately up to each [miner](../resources/glossary.md#miner) to choose the minimum transaction fee they will accept.
Transactions pay fees based on the total byte size of the signed transaction. Fees per byte are calculated based on current demand for space in mined blocks with fees rising as demand increases. The [transaction fee](../resources/glossary.md#transaction-fee) is split between the miner (25%) and masternode (75%), as explained in the [block reward allocation section](https://docs.dash.org/en/stable/docs/user/introduction/features.html#block-reward-allocation). It is ultimately up to each [miner](../resources/glossary.md#miner) to choose the minimum transaction fee they will accept.

All transactions are prioritized based on their fee per byte, with higher-paying transactions being added in sequence until all of the available space is filled.

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4 changes: 2 additions & 2 deletions docs/resources/glossary.md
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## Miner fee

The amount remaining when the value of all outputs in a transaction are subtracted from all inputs in a transaction; the fee is paid to the miner who includes that transaction in a block.
The amount paid to the miner who includes a transaction in a block. This equals 25% of the amount remaining when the value of all outputs in a transaction are subtracted from all inputs in a transaction. The remaining 75% is paid to the masternode eligible for payment at the block height where the transaction is mined. Related to [transaction fee](#transaction-fee).

## Miners

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## Transaction fee

The amount remaining when the value of all outputs in a transaction are subtracted from all inputs in a transaction; the fee is paid to the miner who includes that transaction in a block.
The amount remaining when the value of all outputs in a transaction are subtracted from all inputs in a transaction; the fee is split between the miner (25%) that creates the block containing the transaction and the masternode (75%) eligible for payment in that block.

## Transaction identifiers

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