Fee Monetization
Last updated
Last updated
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(FeeM) on Sonic lets builders earn 90% of the network fees their apps generate — creating a sustainable revenue stream without relying on fundraising. Inspired by Web2 models like YouTube, FeeM rewards developers for the traffic they drive.
FeeM also challenges the extractive "app chain" model by allowing builders to earn 90% of their app's network fees without the need to launch a separate chain. This approach removes the high costs, infrastructure overhead, and interoperability challenges typically associated with app chains.
By integrating monetization directly into the network layer, FeeM simplifies revenue capture and supports scalable, efficient app development within a unified, developer-friendly ecosystem.
The transaction fee breakdown is as follows, which includes an innovative burn mechanism.
The table below compares transaction fee distribution for apps with and without FeeM participation.
Burn
50%
0%
Validator Reward
45%
10%
Ecosystem Vault
5%
0%
Fee Monetization
0%
90%
In Fee Monetization, double counting is prevented by accurately tracking gas consumption within the virtual machine. The system traces all internal calls in a transaction and splits the reward based on the gas each sub-operation consumes.
This ensures that the sum of rewards across different projects never exceeds the total transaction fee. An example is given below.
A trade consumes 100,000 units of gas with a total FeeM reward of 0.017 S.
Inside this transaction, there are operations related to two projects: Project A and Project B.
Project A, the DEX aggregator, is responsible for consuming 37,000 units of gas, while Project B, the liquidity pool on the DEX with which the aggregator interacts, uses 63,000 units of gas.
The total reward is split based on the gas consumption:
Project A receives 37% of the reward (0.00629 S).
Project B receives 63% of the reward (0.01071 S).
The total reward still adds up to 100% of the 0.017 S FeeM reward, ensuring no over-distribution.
The chart below illustrates how the FeeM oracle infrastructure traces each sub-operation and distributes the transaction fee spent on the calls based on gas consumed.
You initiate a claim transaction on the FeeM contract. The oracles confirm your gas usage, and after enough confirmations, your share is transferred to your rewards recipient. You may want to check the for a user-friendly claim UX.
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Transactions on FeeM Apps
If a user submits a transaction on an app that's participating in FeeM, 90% of the transaction fee will be given to the app's developer, and the remaining amount will be tipped to validators.
Transactions on Non-FeeM Apps
If a user submits a transaction on an app that isn't participating in FeeM, 50% of the transaction fee will be burned, and the remaining amount will be tipped to the Ecosystem Vault and validators.
