Tokenomics Approved Update: Interim Asset Marker Formula
Following a recommendation from the Featured App Accountability Committee (FAAC), Tokenomics approved removing the $1 per-asset cap from the interim asset marker formula.
Updated Formula
The current formula:
min(50% × transaction cost, $1, transaction cost / N)
will be replaced with:
min(50% × transaction cost, transaction cost / N)
For transactions with N ≥ 2, this simplifies to:
transaction cost / N
Why This Is Changing
The $1 per-asset cap created two unintended effects.
First, for a two-asset DvP, asset-marker weight stopped scaling once transaction cost reached $2.00. This created an incentive for applications to tune settlement costs around the cap rather than allowing settlement cost to reflect the transaction itself.
Second, the cap disadvantaged batch settlement. For example, a Token Standard v2 batch containing 25 settlements would generate only $2 of asset weight, while the same 25 settlements executed individually could generate $50. This meant applications adopting a more traffic-efficient settlement method could receive lower reward efficiency.
Removing the cap makes batching reward-neutral and provides a consistent 2.0 weight per $1 burned for a two-asset DvP, regardless of transaction size.
Alignment with Featured App 2.0b
This update also aligns the interim methodology with the structure of the Featured App 2.0b formula under review, which uses an 0.20/N per $1 burn methodology without a per-marker cap.
The change avoids creating a reward disadvantage for applications adopting Token Standard v2 batching while the broader Featured App framework continues to evolve.