Merge pull request #478 from AnmolSirola/main

Added fee mechanism for rewards & penalties

docs/node/rewards-penalties.md

@@ -16,7 +16,25 @@ You are responsible for your node, including ensuring uptime, correct behavior,
 ### Current Yield
 
 - The current yield on GNO staking can be found in this [Dune Dashboard](https://dune.xyz/maxaleks/Gnosis-Beacon-Chain-\(Deposits\)). 
-- As of Nov 2022, GNO staking has a ~15-16% yield. 
+- As of Nov 2022, GNO staking has a ~15-16% yield.
+
+### Rewards Calculation:
+
+- **Block Proposals**: The reward for proposing a block consists of a base reward and an additional reward proportional to the validator's index. While the base reward remains constant, the additional reward decreases as the validator's index increases, ensuring equal block proposal opportunities for all validators.
+
+Example: A validator with index 10 proposes a block. The base reward for proposing a block is 100, and the additional reward is 10 / 100 = 0.1. The total reward for the validator is 100 + 0.1 = 100.1.
+
+- **Block Attestations**: The reward for attesting to a block features a base reward that diminishes over time. Initially set at 100%, the base reward decreases by 1% for every 1000 slots, maintaining the attractiveness of block proposal rewards even as the number of validators grows.
+
+Example: A validator with index 100 attests to a block. The base reward for attesting to a block is 100, and the additional reward is 99%. The total reward for the validator is 100 * 0.99 = 99.
+
+### Understanding Gas Consumption and Transaction Fees
+
+- The gas consumption for processing a transaction depends on its complexity. For instance, an ETH transfer between two accounts requires less gas than deploying a new smart contract.
+
+- Transaction fees are computed by multiplying the base fee with the gas price. The Ethereum network determines the base fee, which fluctuates according to block space demand. Users set the gas price, which can vary.
+
+For example, if the base fee is 10 gwei and the gas price is 100 gwei, then the fee for a transaction that uses 100,000 gas would be 1,000,000 gwei.
 
 ### Rewards Curve
 
@@ -87,4 +105,4 @@ In these cases, 1/32 of a validator's staked GNO is immediately burned, and the
 We recommend the following readings for a more in-depth understanding of validator penalties. 
 
 - [Ethereum.org on Proof-of-stake Rewards and Penalties](https://ethereum.org/en/developers/docs/consensus-mechanisms/pos/rewards-and-penalties/)
-- [Upgrading Ethereum on "The Incentive Layer"](https://eth2book.info/bellatrix/part2/incentives/)
+- [Upgrading Ethereum on "The Incentive Layer"](https://eth2book.info/bellatrix/part2/incentives/)