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Version: Mainnet

Sequencer Reward Address

This section covers the management of the sequencer reward address on the RollApp. The sequencer reward address on a RollApp determines where a percentage of rewards (mint and fees) is distributed to for operating the Sequencer node. This address can be updated by submitting a transaction to the Dymension L1, which propagates the change to the L2 (RollApp).

Key Points​

  • Reward source: Each block mints new tokens at the RollApp’s current inflation rate and collects transaction fees. A share of both is routed to the sequencer reward address.
  • Reward share (%): The RollApp creator sets the reward share of block inflation and fees allocated to the sequencer as part of the RollApp creation process. The parameter is adjustable through on-chain governance. Teams may also agree on additional off‑chain revenue sharing. For live RollApps, both the inflation rate and the reward percentage appear in the RollApp's dashboard.
  • Authorization: Only the current sequencer, as determined by the Dymension L1, can update the reward address.
  • Propagation: The update on the Dymension L1 propagates to the RollApp (L2).

Command Syntax​

Use the following command to update the sequencer reward address:

dymd tx sequencer update-reward-address <new-reward-address> --from <sequencer-account>

Example​

dymd tx sequencer update-reward-address ethm1lhk5cnfrhgh26w5r6qft36qerg4dclfev9nprc --from foouser