Fund system chains sovereign accounts on Polkadot BridgeHub for Polkadot<>Kusama bridge

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1yr ago

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The P<>K bridge charges user fees on originating Asset Hub, but it pays relayer rewards from AssetHubs' sovereign accounts on sibling BridgeHub parachains. These relayer rewards are a large part of the bridge's "operating costs".

For initial deployment, AssetHub's sovereign accounts on BridgeHubs should be pre-funded by treasury.

An initial 10100 DOT and 2030 KSM is proposed to be split among the relevant system chain sovereign accounts to provide initial bootstrap runway to the bridge.

This will only be an initial seed. As the bridge operates, it should cover operation costs (relayer fees) from the user fees paid on Asset Hub, and any unspent user fees ("bridge profits") are going to the treasury anyway, so in the longer term these funds are practically paid back (plus profits).

Exact system chain addresses being funded and amounts for each can be found here: https://github.com/polkadot-fellows/runtimes/issues/238

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The P<>K bridge charges users fees on its Asset Hub.
It pays rewards to relayers from special accounts on sibling networks called BridgeHub parachains.
These relayer rewards are a big part of the bridge's running costs.
To start the bridge, some initial funds will come from a treasury.
The proposal suggests using 10,100 DOT and 2,030 KSM to help start the bridge.
Over time, the bridge will use user fees to cover its costs and any extra money will go back to the treasury.
Details about the funding and amounts can be found in a special link.