Skip to content

Commit

Permalink
updating doc
Browse files Browse the repository at this point in the history
  • Loading branch information
mmontin committed Jul 11, 2024
1 parent 9958c03 commit 39875da
Showing 1 changed file with 10 additions and 9 deletions.
19 changes: 10 additions & 9 deletions doc/BALANCING.md
Original file line number Diff line number Diff line change
Expand Up @@ -14,15 +14,16 @@ is currently implemented, and which options affect this mechanism.

In Cardano, transactions must be balanced before they can be submitted for
validation. This means the equation `input value + minted value = output value +
burned value + fee` must be satisfied to proceed to phase 2 of the validation
process. Additionally, when a transaction involves scripts, and thus its
validation can fail in phase 2, collaterals must be provided to account for such
possible failures. These collaterals are related to the fee through the protocol
parameter `feeToCollateralRatio` by the inequation `totalCollateral >= fee *
feeToCollateralRatio`, and they must satisfy their own preservation equation:
`collateralInputs = totalCollaterals + returnCollaterals`. Lastly, the actual
required fee for a given transaction depends on the size of the transaction and
the (not yet executed) resources used by the scripts during validation.
burned value + deposited value + fee` must be satisfied to proceed to phase 2 of
the validation process. Additionally, when a transaction involves scripts, and
thus its validation can fail in phase 2, collaterals must be provided to account
for such possible failures. These collaterals are related to the fee through the
protocol parameter `collateralPercentage` by the inequation `totalCollateral >=
fee * collateralPercentage`, and they must satisfy their own preservation
equation: `collateralInputs = totalCollaterals + returnCollaterals`. Lastly, the
actual required fee for a given transaction depends on the size of the
transaction and the (not yet executed) resources used by the scripts during
validation.

### Balancing mechanism

Expand Down

0 comments on commit 39875da

Please sign in to comment.