# Relayers

In the Privax ecosystem, relayers play a crucial role. These are web servers responsible for forwarding zero-knowledge proofs, which demonstrate state transitions, from the client to the respective on-chain program. In exchange for a fee upon successful proof verification, relayers cover the transaction fees. The zero-knowledge proof contains an integrity hash, ensuring that relayers remain trustless and incapable of modifying transactions or proofs without triggering on-chain verification failure.

Relayers operate without accessing more data than what's stored on-chain, and they do not control your funds. However, theoretically, a relayer could choose not to process your transaction request, effectively censoring you. To mitigate this risk, we aim to progressively decentralize the relayer network by transitioning from a permissioned to a permissionless list of relayer hosts in the long term

In this system, holders of the native staking token of the chain can become relayers and can delegate tokens to relayers, ultimately determining the effective relayers set for the system. Relayers will receive 20% of the tokens as block rewards over a long period of 10-15 years. This is designed to enhance the security of the chain.

Apart from the staking token allocation, the reward will be also funded by the portion of the transaction fee. 30% of all transaction fees are diverted to the staking pool.

Staking inefficiencies and surplus burning mechanism: The APY for stakers (nominators & relayers) decreases whenever the actual staking rate is not equal to the ideal staking rate. The more native tokens staked, the bigger proportion of allocated tokens diverted to the staking pool for distribution between nominators and relayers. The remaining tokens are burned.

Slashes and burning: whenever relayers and nominators are slashed, a share of the slashed tokens are burned.


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