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Economics

Costs

ComponentCost
Per-registration SP1 proof~$0.001-0.005
VPS for scanner + API~$10-15/month
Zcash node (lightwalletd)~$20-30/month (or use public instance)

At 10 registrations/day (8+ char names, 0.01 ZEC each):

  • Daily proof costs: ~$0.05
  • Monthly infrastructure: ~$30-45
  • Monthly proof costs: ~$1.50

Money Flow

IN:  Registration fees -> burned (nobody gets them)
IN: API query fees / subscriptions -> operator revenue
IN: Marketplace escrow -> payout to sellers (minus operator fee, if any)
OUT: Operator pays for SP1 proofs (PROVE tokens) + infrastructure (~$30-50/month)

SP1 Proving (No GPU Needed)

The operator runs a lightweight scanner on a cheap VPS. When a registration is detected:

  1. Scanner prepares inputs (block data, encrypted output, current SMT state)
  2. Scanner calls the Succinct Prover Network via the SP1 SDK (an API call)
  3. GPU operators on the network generate the proof (1-3 seconds)
  4. Scanner receives the ~260-byte proof
  5. Scanner stores the proof and updated state