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Oracle Fee Model

Pronunciation
[awr-uh-kl fee mod-uhl]
Analogy
Like different mobile data plans charging per gigabyte or a flat monthly rate, oracle fees can be usage-based or subscription-based.
Definition
The pricing structure defining how oracle nodes are compensated for data services, including per‑request fees, subscription plans, or performance-based rewards.
Key Points Intro
Oracle fee models align node incentives with data consumer needs and usage patterns.
Key Points

Pay‑per‑call: Fixed fee for each data request.

Subscription: Recurring payment for continuous updates.

Performance bonus: Additional rewards for uptime and accuracy.

Tiered pricing: Volume discounts or SLA levels.

Example
An oracle charges 0.01 LINK per price update call, with a monthly subscription option at 100 LINK for unlimited updates.
Technical Deep Dive
Fee contract calculates `fee = baseFee + usageFee * calls`. Consumers approve ERC‑20 allowance to escrow, and each `requestData()` transfers fee to node upon callback.
Security Warning
Low fees can attract low-quality nodes; ensure minimum fee covers operational costs.
Caveat
Complex fee models add on‑chain overhead; keep calculations simple.
Related Terms
Oracle Escrow
Oracle SLA Enforcement
Oracle Collateralization
Oracle Incentive Model
Oracle Subscription

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