2 min readNov 3, 2021


Geneva, Switzerland; New York, New York, USA; November 3, 2021 — As the SonoCoin ecosystem expands, it becomes necessary to introduce a fee structure in order fairly divide network bandwidth between decentralized applications. As a result, stakeholders are rewarded in exchange for processing transactions and the economic value of coins increase as decentralized applications (DApps) fuel the demand for SonoCoins.

Staking allows you to earn “passive income” in exchange for producing blocks on the blockchain. The introduction of a coin-based transactions costs will increase the profitability of stakers as fees are combined with block rewards.

Below is a section from the SonoCoin Whitepaper explaining different possibilities.

Similar to how tokens are used in Ethereum to pay transaction fees and compensate block producers, SonoCoins are used to compensate block-producing nodes. But there is a difference: in the Ethereum model, fees are paid directly by users who make transactions. In SonoCoin, fees are paid by DApps, which can in their turn collect fees from users. This is discussed in more detail in the next section.

Application fee models

In SonoCoin, users pay fees indirectly:

1. The DApp pays to nodes hosting fees. Fee is paid from DApp token account on a daily basis and depends on computational resources requested by the application and used data volume.

2. The DApp itself can collect fees from users according to its own policies. This means that there’s no system-wide fee policy for users. DApp developers are free to implement any policy they want.

We believe following fee models might be relevant:

1. Classic model: fees are paid for each performed action. Unlike in Bitcoin and Ethereum the price can be fixed, fees do not need to be demand-based.

2. Subscription model: user pays a subscription and then can perform actions without additional payments, however, these actions should be rate-limited to prevent abuse. For example, on a Twitter-like service a user might be restricted to 50 messages per day.

3. Freemium model: certain action might be performed for free, but other actions might require paid subscription. The freemium model is very common for internet businesses.

4. Subsidized model: an application may not collect fees from users, and instead rely on a pre-funded account provided by a sponsor. This can work well when sponsors derive benefit from users outside of blockchain, e.g. the DApp might be available only to users who bought a physical product. This model could work well with manufacturers of IoT devices sponsoring users who bought the device for use of arelated DApp.

5. Donation-based model: wealthy donors might donate tokens to provide services to users for free.

6. App-connected: user can pay fees indirectly when they perform actions:

a. Buy in-app items, etc

b. Convert tokens to “app gold”

c. Trade items

d. Pay in-app taxes

About SonoCoin

SonoCoin is a native proof-of-stake blockchain platform: the first to host audible friendly tokens. It combines smart contract technology with breakthrough data-over-sound capability.





Build with Sound — the first audible token network