ProtocolIncentives

Incentives

Tangle’s incentives come from two sources:

  1. Service fees paid by customers when they create and run blueprint services.
  2. TNT incentive budgets funded to the protocol (no automatic minting).
Incentives flow for service fees and TNT budgets

Service fees split through Payments.sol; TNT budgets flow through InflationPool, RewardVaults, and ServiceFeeDistributor.

Claim paths: staker fees + staker inflation via ServiceFeeDistributor, TNT staking incentives via RewardVaults, and operator/customer/developer TNT via InflationPool.

Code references: Payments.sol, ServiceFeeDistributor.sol, InflationPool.sol, RewardVaults.sol, TangleMetrics.sol

Service Fees

Customers pay for blueprint services using the chain’s native token or an ERC-20 payment token (including TNT). Fees are split between:

  • Developer (blueprint owner, or a payout address returned by the blueprint’s service manager)
  • Protocol treasury
  • Operators (weighted by that service’s per-operator exposure)
  • Stakers (delegators who staked with the chosen operators)

The default split is 20% developer / 20% protocol / 40% operators / 20% stakers, and can be updated by governance.

Staker shares are routed per-operator to the on-chain ServiceFeeDistributor, which distributes fees to delegators based on:

  • Delegated amount (and optional lock multiplier)
  • Blueprint selection (All vs Fixed)
  • Optional per-asset security requirements and operator commitments (and optional USD normalization via a price oracle)

TNT Incentives (Pre-Funded)

TNT incentives are distributed from a pre-funded on-chain pool:

  • InflationPool holds TNT allocated by governance/treasury and distributes it in epochs.
  • The staking portion funds RewardVaults, which pays TNT incentives for delegated assets (with a deposit cap per asset).
  • Other portions become claimable TNT balances for operators, customers, and developers.
  • If stakersBps > 0, a staker TNT budget is distributed by service exposure and routed through ServiceFeeDistributor.

Metrics and Scoring

The protocol can optionally record activity into a metrics contract (TangleMetrics) using best-effort hooks (failures do not block core protocol actions). Those metrics drive merit-based distributions in InflationPool.

Why This Layout Works

  • One staker fee path: Service fees always flow through ServiceFeeDistributor, so payout math is consistent across tokens and services.
  • Budget clarity: Incentives only exist if governance funds them; there is no hidden inflation.
  • Predictable integration: Developers can reason about exactly where funds go and how to claim them.

Source Contracts (GitHub)