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Fee Distribution

Customize fee distribution on an Avalanche L1

Setting a Custom Fee Recipient​

By default, all fees are burned (sent to the black hole address with "allowFeeRecipients": false). However, it is possible to enable block producers to set a fee recipient (who will get compensated for blocks they produce).

To enable this feature, you'll need to add the following to your genesis file (under the "config" key):

{
  "config": {
    "allowFeeRecipients": true
  }
}

Fee Recipient Address​

With allowFeeRecipients enabled, your validators can specify their addresses to collect fees. They need to update their EVM chain config with the following to specify where the fee should be sent to.

{
  "feeRecipient": "<YOUR 0x-ADDRESS>"
}

If allowFeeRecipients feature is enabled on the Avalanche L1, but a validator doesn't specify a feeRecipient, the fees will be burned in blocks it produces.

This mechanism can be also activated as a precompile. See Changing Fee Reward Mechanisms in Avalanche docs for more details

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