Fee Structure in SupraNova

SupraNova’s fee model is designed to sustain a permissionless, decentralized bridging ecosystem while incentivizing critical actors like relayers and committee updaters.

Fee Overview and Responsibilities

SupraNova applies two levels of fees internally but simplifies the user experience by exposing only the Service Layer Fee during transaction confirmation.

Verification Fee

An internal fee that compensates Committee Updaters for:

• Proof generation

• Signature validation

• Validator public key updates

Paid by: Service Layer (not the user directly)

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Service Layer Fee

Visible to users and deducted upon initiating a bridge transaction. It covers:

• Operational costs

• Treasury accumulation

• Relayer and Committee Updater rewards

Then the system separates fees into two distinct layers:

Fee Type	Purpose	Source of Funding
Verification Fee	Covers cryptographic proof verification on Supra	Funded from service fee.
Service Layer Fee	Specific to the token bridge service, customizable by service providers	Paid by bridging users

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Message Passing Layer Fee

This fee is charged for:

• Verifying Sync Committee proofs

• Verifying ancestry and receipt proofs

• Managing public key updates (Committee Updater work)

• Safe validators committee handovers through public key updates.

Who Charges It?

• The HyperNovaCore verifier contract charges this fee internally. Service-contracts calling the message-passing layer for validation pay this fee as part of the process.

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Service Layer Fee (Token Bridge Specific)

This fee is charged by service-specific components like the Token Bridge and includes:

• Operational Service costs.

• Relayer rewards.

Who Sets It?

• The Token Bridge smart contract service owner (typically the protocol team).

How is it Collected?

• A small cut is deducted from the bridged amount (in bridged assets like supETH or supUSDC) at the time of minting.

The entire bridging fee is borne by the bridging users.

What Does It Fund?

• Relayer incentives

• Operational treasury buildup

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Fee Breakdown Example During a Bridge Transaction

Suppose you are bridging 1 ETH:

Fee Component	Example
Message Passing Verification Fee	0.001 $SUPRA equivalent
Service Layer Fee (token bridge)	0.1% of bridged amount
Relayer Reward (from service fee)	Paid after periodic treasury disbursal
Committee Updater Reward	Paid after periodic treasury disbursal

• The net amount minted as supETH will be slightly less than 1 ETH after fees.

• All fees are transparent and visible during the bridge confirmation step.

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Incentivizing Liveness

Both relayers and committee updaters are permissionless roles that ensure network liveness and decentralization.

They are incentivized through fee rewards:

Actor	Task	Incentive Source
Relayer	Submit proof bundles	Treasury payouts via Service Layer Fee
CommitteeUpdater	Update Sync Committee public keys	Payouts via Verification Fee

Without sufficient rewards:

• Relayers may delay proof submissions

• Committee updates may lapse, compromising security

SupraNova’s modular fee and reward system ensures both roles remain sustainably incentivized.

Testnet Fee Settings

• Some fees (especially the Verification Fee) are reduced or zero for testing purposes.

• The full model is enforced at Mainnet launch.

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Fee Model for our Ethereum to Supra Bridge protocol

This protocol involves a Token Bridge Service and a Message Passing Layer. The model details various fees and rewards, including:

• Service Fee (S)

• Relayer Rewards (RR)

• Committee Updater Rewards (CUR)

• Relayer Expense (RG)

• Committee Updater Expense (CUG)

• Verification Fee (V)

Key points of the model:

• Users pay a Service Fee (S) and gas costs when initiating a bridge request.

• Relayers are compensated with Relayer Rewards (RR) that cover their expenses (RG).

• Committee Updaters (CU) are rewarded (CUR) for updating Ethereum sync committee public keys to Supra, covering their expenses (CUG).

• RG and CUG are treated as constants determined by the Admin.

Fee Derivation Formulas

Given traffic estimate X, and gross margins SM, VM, CUM, RM:

• CUR = CUG / (1 - CUM)

• V = (CUR / X) / (1 - VM)

• RR = (V + RG) / (1 - RM)

• S = RR / (1 - SM)

Tiered Service Fee Structure

To accommodate varying bridge volumes, SupraNova introduces a tiered service fee model based on the value bridged in USDT:

Tier	Bridged Value Range	Service Fee Rate
Micro	< $5,000	0.5%
Standard	$5,000 – $100,000	0.3%
Whale	> $100,000	0.2%

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SupraNova Address Details

Network Name	Hypernova	Token Bridge
Ethereum Sepolia	0x50888Fc24e1224E12f5C8a31310A47B98b2A7f75	0x71eb89D6D0d6ED44526dd8EAcb956735934eC2d5
Supra Testnet	0x3ab1136a5dbb76b923d2b02f95b042f5d80b70218a0395755eafb63d4eefc340	0x76b38ad503118cb7749a835d965b023a2fe4801dba736bfa66e18d1f0339695c
Ethereum Mainnet	0xEF7238503Fdd7671d85F3Cc5e4B9d7D90e99bFF1	0x7cECd42A15A691EF693512b1D508F1465ec5DA16
Supra Mainnet	0xda20f7d0ec813c751926f06004a10bc6ee1eefc96798f6a1aa31447ee146f932	0xda20f7d0ec813c751926f06004a10bc6ee1eefc96798f6a1aa31447ee146f932

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Asset Details

Testnet

Asset Name	Ethereum (Lock)	Asset Name	Supra (Mint)
WETH	0xfFf9976782d46CC05630D1f6eBAb18b2324d6B14	supETH	0x1a57888bfcd31ef82a8e3dac93db14335b36f9228d5f050b722151ae2a77153a
USDC	0x1c7D4B196Cb0C7B01d743Fbc6116a902379C7238	supUSDC	0x3ca17a5b04d826f9be112c319e003b3a79b2682c40613876023758dbb0d 03e96

Mainnet

Asset Name	Ethereum (Lock)	Asset Name	Supra (Mint)
WETH	0xC02aaA39b223FE8D0A0e5C4F27eAD9083C756Cc2	supETH	0xe4af154ade9551e7f58a23b8f727ae2dca050f1b74582bb518ba361c889d246d
USDC	0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48	supUSDC	0xf90b4b9d4a9d87c39fb3140513e52edc3ead5eaddcb9881b02becdeb63c5793d

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Asset Transaction Limit

Asset Name	Max Global Limit	Per Transaction Limit
ETH	23000000000000000000 (23 ETH)	1200000000000000000 (1.2 ETH)
USDC	100000000000 (100K USDC)	5000000000 (5K USDC)