There are two main components outlined above for revenue generation to the Hub:
i) Bridging Fees - Outlined in $ estimates above
ii) Validator Staking Rewards - Outlined in tokens above
i) Bridging fees are dollarized and are laid out across two scenarios of fee structure — flat-fee (static $ amount per transfer) + variable fee (% of volume transferred).
ii) At the moment, validator staking rewards are paid out in PICA and will eventually be transitioned to LAYR upon TGE. The amount of PICA tokens being distributed to validators is outlined above as well, and currently stands at 8,333,333.33 PICA per month. This would break down to 1,666,666.67 being distributed amongst the split to Hub validators. At the moment, PICA is relatively nascent as it is only being used for collator and validator staking, but will be enabled to capture bridge revenue in the near future. It’s current DEX trading price stands at $0.00044.
Similarly, once the switch to LAYR in enacted, 125,000 LAYR will be distributed monthly with 25,000 of that LAYR being split to Hub validators.
The main goal here is to flow bridging revenue from all external ecosystems connected via IBC back to the Hub. We are currently connecting Kusama + Polkadot to the Cosmos via IBC and will be extending this to additional ecosystems in the near future. Ideally, the Hub then receives revenue for all IBC transfers anywhere that IBC is used via Composable.
Rollup Settlement
The goal is to provide an alternative settlement layer for rollups. This means being able to store the state transitions (block hashes, state roots, etc), and have the mechanism to prove that they were correctly generated (or not)