Fees, burning and ADS staking#
Adshares fees are related to three burning mechanisms embedded in the system. Burning temporarily reduces the free floating supply. Liquid staking rewards bring back the burned ADS flowing them from active users to long term holders every 2048 blocks.
ADS Wallet inactivity fee#
There is a third burning mechanism in Adshares ecosystem which is a small inactivity fee after 2 years to encourage regular checking of key backups and prevent permanent loss of coins. The inactivity fee is 1 promile every 2048 blocks. ADS charged due to inactivity fee are burned. Thanks to this mechanism, uninterrupted network activity is ensured. We encourage you to log into your account and make at least one empty transaction during the year. Wrapped ADS can be used to avoid inactivity fee. Using ADS bridged to Ethereum, BNB chain or Polygon as an ERC-20/BEP-20/MATIC token will prevent the fee. However, it is worth remembering that the wrapped ADS token will not participate in the liquid staking.