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Kaspa Q&A

Fees and VSPC(Virtual Selected Parent Chain)

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Can only the miners who generated the blocks included in VSPC receive the fees?

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No, in Kaspa each blue block receives a reward. The main reason is that rewarding only chain blocks (VSPC blocks) creates incentives for selfish mining.

But there are other (milder) advantages to being a chain block:

  1. In GHOSTDAG ordering, it precedes any block in the same mergeset - therefore, if two blocks in the same mergeset have the same transaction, the chain block will receive its fees.
  2. If it points to a red block, it will receive its reward. This rule has an exception: if the red block is outside the difficulty window, its reward will vanish (see more info here)
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Mining rewards are given to all blue blocks, and transaction fees are given only to blocks in the VSP... (2 comments)
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This is a response from Gemini.

The core question is: "In Kaspa, if multiple non-parent blocks simultaneously include the same transaction, who gets the fee?"

In short, the transaction fee is awarded entirely to the miner whose block is chosen by the GhostDAG consensus to effectively process the transaction first. Fees are not split.

Key Points:

  1. VSPC Determines Order: The GhostDAG protocol defines a VSPC (Virtually Selected Parent Chain), which establishes a single, definitive order for all transactions in the DAG.
  2. Winner Takes Fee: The block (Block A) whose transaction (Transaction T) appears first in the VSPC order is deemed valid. The miner of Block A receives the entire transaction fee.
  3. Losers' Transactions are Invalid: Any other simultaneously generated blocks (Block B, C, etc.) that also included Transaction T will have their version of T marked as invalid (double-spend), as the coin used by T has already been spent by Block A's processing. The miners of these blocks receive no transaction fee for that specific transaction.

Therefore, while multiple blocks might contain the same transaction, only the one that achieves final, valid inclusion via the VSPC gets the fee.

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