Transactions

Transaction types, fee structures, and token mechanics for SNR within the Sonr network

Overview

SNR token transactions power the revolutionary Sonr ecosystem, enabling gasless onboarding, stake-based service registration, and UCAN-authorized operations. The unique architecture allows for both traditional fee-based transactions and innovative gasless user experiences.

Sonr features both traditional fee-based transactions and revolutionary gasless operations like vault claiming, enabling zero-barrier user onboarding while maintaining network security through economic incentives.

Transaction Types

Basic Transfers

The foundation of the SNR economy consists of peer-to-peer token transfers:

Simple Transfers

Direct SNR transfers between addresses with minimal gas fees

Multi-send

Batch transfers to multiple recipients in a single transaction

Scheduled Transfers

Time-locked transfers with vesting or release conditions

Module-Specific Transactions

Each Sonr core module enables specialized transaction types with specific SNR token requirements:

Service Module (x/svc) Transactions

  • MsgRegisterService: Register a new service with TLD domain verification and capability requests
  • MsgUpdateService: Update service metadata or request additional permissions
  • DNS Verification: Simple DNS TXT record verification for domain ownership
  • Stake Requirements: Services must stake SNR tokens based on requested capabilities

DWN Module (x/dwn) Transactions

  • MsgClaimVault: Gasless transaction for claiming user vaults during onboarding
  • Vault Configuration Updates: Paid transactions for advanced vault settings and WASM runtime upgrades
  • Cross-Chain Operations: SNR fees for multi-chain vault management and bridging
  • MPC Operations: Transaction fees for multi-party computation within secure enclaves

UCAN Module (x/ucan) Transactions

  • MsgIssueRootCapability: Request MPC threshold signing for root capability tokens
  • MsgSubmitThresholdShare: Validators submit MPC shares for capability creation
  • MsgRevokeCapability: Revoke previously issued capability tokens on-chain
  • Delegation Chain Processing: Computational fees for validating complex authorization chains

DID Module (x/did) Transactions

  • DID Registration: Fees for creating new decentralized identifiers
  • MsgLinkAuthentication: Add WebAuthn credentials or other authentication methods
  • MsgLinkAssertion: Link identity claims and verifications to DIDs
  • MsgExecuteTx: Execute UCAN-authorized transactions on behalf of DIDs

Fee Structure

Dual Fee Model

Sonr implements a revolutionary dual fee model supporting both traditional gas fees and gasless operations:

Fee={0for gasless operations (vault claiming)Base Cost+(Gas Used×Gas Price)for standard transactions\text{Fee} = \begin{cases} 0 & \text{for gasless operations (vault claiming)} \\ \text{Base Cost} + (\text{Gas Used} \times \text{Gas Price}) & \text{for standard transactions} \end{cases}

While basic vault claiming is gasless, advanced operations like service registration, MPC signing, and cross-chain transactions require SNR tokens for network security and spam prevention.

Fee Components

MPC Computation

Multi-party computation costs for threshold signing and capability issuance

Stake-Based Security

Service registration fees that are burned or sent to community pool

Cross-Chain Operations

IBC and InterchainAccount transaction costs for bridgeless operations

Identity Operations

DID registration, authentication linking, and credential management

Economic Mechanisms

The network implements sophisticated economic mechanisms:

  1. Gasless Subsidies: Network subsidizes vault claiming for zero-barrier onboarding
  2. Stake-Based Pricing: Service registration costs scale with capability requests
  3. MPC Rewards: Validators earn additional fees for threshold signing participation
  4. Deflationary Pressure: Service registration fees are burned, reducing total supply

Transaction Lifecycle

Gasless Vault Claiming Flow

graph LR
    A[WebAuthn Creation] --> B[Client-Side Vault Config]
    B --> C[Submit MsgClaimVault]
    C --> D[Network Subsidy Check]
    D --> E[Gasless Execution]
    E --> F[Vault Active]

Service Registration Flow

graph LR
    A[DNS Verification] --> B[Stake Calculation]
    B --> C[MsgRegisterService]
    C --> D[Capability Request]
    D --> E[MPC Signing]
    E --> F[Root UCAN Issued]

UCAN Authorization Flow

graph LR
    A[Service Request] --> B[Capability Check]
    B --> C[User Approval]
    C --> D[UCAN Creation]
    D --> E[Delegation Chain]
    E --> F[Authorized Execution]

Standard Transaction Processing

  1. UCAN Validation: Check authorization tokens and delegation chains
  2. Module Routing: Route to appropriate module (svc, dwn, ucan, did)
  3. MPC Coordination: Multi-party computation for sensitive operations
  4. State Updates: Update module-specific state and emit events
  5. Fee Distribution: Distribute fees to validators, burn pool, and treasury

Advanced Features

UCAN-Powered Automation

Enable sophisticated authorization patterns:

Capability Delegation

Services receive granular, time-limited permissions from users

Agent Execution

Motr Vaults execute pre-authorized actions without user intervention

Subscription Automation

Recurring payments and service interactions through UCAN tokens

Multi-Party Computation Integration

Leverage MPC for secure operations:

  • Threshold Signing: Validators collaborate to issue root capabilities
  • Key Sharding: No single point of failure for vault key management
  • Secure Enclaves: WASM-based computation with hardware security
  • Privacy Preservation: Zero-knowledge proofs for sensitive operations

Cross-Module Interactions

Transactions can interact with multiple Sonr modules in powerful combinations:

// Example: Complete user onboarding with service registration
const tx = {
  messages: [
    // DID Module: Create decentralized identity
    {
      type: "did/MsgCreateDID",
      creator: "sonr1abc...",
      document: didDocument,
      webauthnCredential: credential,
    },
    // DWN Module: Claim gasless vault
    {
      type: "dwn/MsgClaimVault",
      creator: "did:sonr:alice123",
      vaultConfig: vaultCID,
      mpcThreshold: 3,
    },
    // Service Module: Register domain service
    {
      type: "svc/MsgRegisterService",
      creator: "did:sonr:alice123",
      domain: "alice-app.com",
      capabilities: ["dwn:read", "dwn:write"],
      stakeAmount: "5000usnr",
    },
    // UCAN Module: Request root capability
    {
      type: "ucan/MsgIssueRootCapability",
      issuer: "did:sonr:alice123",
      audience: "alice-app.com",
      capabilities: ["service:register"],
    },
  ],
  fee: {
    amount: [{ denom: "usnr", amount: "5000" }], // Only service registration fee
    gasLimit: "500000",
  },
  memo: "Complete onboarding: Identity + Vault + Service + Capabilities",
};

// Example: Cross-chain payment automation
const paymentTx = {
  messages: [
    // UCAN: Validate payment authority
    {
      type: "ucan/MsgValidateCapability",
      token: ucanPaymentToken,
      requestedAction: "payment:send",
    },
    // DID: Execute authorized transaction
    {
      type: "did/MsgExecuteTx",
      signer: "did:sonr:alice123",
      targetChain: "osmosis-1",
      transaction: swapTransaction,
      authorization: ucanToken,
    },
  ],
};

Performance Optimization

Module-Specific Batching

Optimize transactions by batching within module boundaries:

  1. DWN Operations: Batch vault updates and data operations
  2. Service Operations: Group domain verifications and capability requests
  3. UCAN Processing: Batch capability validations and delegation chains
  4. Cross-Chain Coordination: Bundle InterchainAccount operations

Gasless Operation Prioritization

Sonr prioritizes gasless operations to enhance user experience:

Gasless vault claiming is prioritized by validators to enable zero-friction onboarding. Service registration and MPC operations use dynamic pricing based on network demand and stake requirements.

MPC Coordination Efficiency

Multi-party computation operations are optimized for performance:

// MPC threshold signing optimization
interface MPCOptimization {
  parallelShares: boolean; // Generate shares in parallel
  precomputedCommitments: boolean; // Cache commitments
  batchSigning: boolean; // Sign multiple capabilities together
  networkSharding: boolean; // Distribute computation load
}

Security Considerations

Module-Specific Security

  • DID Security: WebAuthn hardware-backed authentication prevents identity theft
  • UCAN Validation: Cryptographic proof chains ensure capability authenticity
  • Vault Isolation: MPC key sharding prevents single points of failure
  • Service Reputation: Stake-based trust system deters malicious actors

Zero-Knowledge Privacy

Sonr implements privacy-preserving transaction patterns:

// Privacy-preserving operations
interface PrivacyFeatures {
  zkProofs: {
    ageVerification: boolean; // Prove age without revealing birthdate
    balanceProofs: boolean; // Prove sufficient funds without amounts
    reputationProofs: boolean; // Prove service quality without data
  };
  selectiveDisclosure: {
    didDocuments: boolean; // Share only necessary identity claims
    vaultData: boolean; // Controlled data access permissions
    paymentHistory: boolean; // Private transaction records
  };
}

Best Practices for Sonr Transactions

  1. UCAN Validation: Always verify capability tokens before execution
  2. MPC Coordination: Ensure threshold requirements are met
  3. Gasless Limits: Monitor gasless operation quotas and fallbacks
  4. Cross-Chain Safety: Validate IBC channel security and timeouts

Fee Distribution

SNR transaction fees are distributed to align network incentives:

Validators (35%)

Block proposers and MPC threshold signers receive primary rewards

Burn Pool (25%)

Service registration fees burned for deflationary pressure

Community Treasury (25%)

Development and ecosystem growth funds

Gasless Subsidy (10%)

Funds vault claiming and onboarding operations

IBC Relayers (5%)

Cross-chain message delivery and InterchainAccount operations

Module-Specific Fee Sources

// Fee sources by module
interface ModuleFees {
  svc: {
    domainRegistration: "25% to burn, 75% to validators";
    capabilityRequests: "Deposit-based, refundable on completion";
    stakeSlashing: "100% to community treasury";
  };

  dwn: {
    vaultClaiming: "Gasless (subsidized by treasury)";
    storageOperations: "Standard gas fees";
    mpcOperations: "Premium fees for computation";
  };

  ucan: {
    rootCapabilityIssuance: "MPC coordination fees";
    delegationValidation: "Minimal computational costs";
    revocations: "Standard gas fees";
  };

  did: {
    didRegistration: "One-time identity creation fee";
    credentialLinking: "WebAuthn integration costs";
    crossChainExecution: "IBC and InterchainAccount fees";
  };
}

Future Enhancements

Revolutionary Capabilities in Development

  • AI-Powered Automation: Natural language transaction commands through Motr Vault agents
  • Predictive Authorization: Pre-approve expected transactions based on user patterns
  • W3C Payment Handler: Native browser integration for seamless Web2/Web3 payments
  • Subscription Automation: Recurring payments through UCAN capability delegation
  • Privacy-First Operations: Full zero-knowledge transaction processing
  • Hardware Enclave Integration: Dedicated Sonr hardware for enhanced security
  • Cross-Chain DeFi: Seamless DeFi operations across all supported chains
  • Social Recovery Networks: Trustless account recovery through guardian systems

Standards-Based Interoperability

Building on open standards for maximum compatibility:

// Future standards integration
interface FutureStandards {
  w3cCompliance: {
    paymentHandlerAPI: "Native browser payment integration";
    webauthnLevel3: "Enhanced biometric authentication";
    didCore2: "Next-generation identity standards";
  };

  crossChainStandards: {
    ibcV2: "Enhanced cross-chain capabilities";
    cosmwasmCompatibility: "Universal smart contract execution";
    evmIntegration: "Ethereum Virtual Machine support";
  };

  privacyStandards: {
    zkStarks: "Scalable zero-knowledge proofs";
    selectiveDisclosure: "W3C verifiable credentials";
    confidentialComputing: "Hardware-backed privacy";
  };
}