💸Introduction to SFS

Quick overview of SFS

When building a layer 2 network with the OP stack, block production is handled mainly by a single entity known as the sequencer. The sequencer plays a crucial role in the network by:

• Confirming transactions and updating the state

• Constructing and executing L2 blocks

• Submitting user transactions to L1

Until fault proofs are introduced in the OP ecosystem, these sequencers are centralized for security and are managed by Camp Network, similar to other OP chains. This setup allows Camp Network to collect all sequencer fees. The Sequencer Fee Sharing (SFS) system is designed to distribute a portion of these fees to developers who deploy smart contracts.

Developers can earn a share of the network's sequencer fees by registering their contracts with the Fee Sharing Contract. To do this, they must add specific logic to their smart contracts for registration in the SFS.

The SFS contract acts as a registry that tracks and stores all balances. Once a developer's contract is deployed and registered with the SFS, it starts earning fees immediately whenever the contract is used. During registration, the SFS mints an NFT that serves as a claim to the earned fees, and this NFT is sent to the specified recipient. This NFT allows its holder to claim rewards for the associated smart contract. Whether the NFT is held in a wallet or another smart contract, the entity wishing to withdraw the earnings must possess the NFT to access the funds.