# Provenance stamped 2026-10-07 (roadmap#943): written by an API Evangelist sweep (dated 2026-06-13 by the file itself), not
# harvested from the provider. `method: generated` so the economics campaign may replace it with a
# dated, verbatim transcription; every figure below is unverified until it does.
# Coverage demoted 2026-10-07 (roadmap#942, PLAN.md Stage A): this file was written by an API Evangelist
# sweep and names no billing unit, meters or pricing category read from the provider — it restates the
# FinOps framework. It is `x-coverage: unmeasured`, and the FOCUS alignment it claimed has been removed.
x-coverage: unmeasured
method: generated
generated: '2026-06-13'
name: XMTP FinOps
description: >-
  XMTP uses a novel decentralized FinOps model where fees are paid in USDC
  directly to independent node operators. Unlike traditional SaaS APIs with
  monthly invoices, developers pre-fund their applications through the XMTP
  Funding Portal and the network deducts fees per message in real time.
  Cost forecasting is based on expected message volume and average message size.
url: https://docs.xmtp.org/fund-agents-apps/calculate-fees
created: '2026-06-13'
modified: '2026-06-13'
costs:
  - name: Base Messaging Fee
    description: >-
      Flat per-message charge applied to every message sent on the XMTP
      network. Set at a global rate by network governance. Serves as the
      foundational cost component for all XMTP deployments.
    type: UsageBased
    unit: per-message
    currency: USDC
    estimate: 0.00005
    estimateUnit: USDC per message
    details: Approximately $5 per 100,000 messages
    url: https://docs.xmtp.org/fund-agents-apps/calculate-fees

  - name: Storage Fee
    description: >-
      Per-byte-day storage fee for message retention on the XMTP network.
      Calculated based on the size of the encrypted message payload and the
      number of days it is retained. Default retention period is 60 days.
      Formula: storage rate × message size in bytes × retention days.
    type: UsageBased
    unit: per-byte-day
    currency: USDC
    estimate: variable
    estimateUnit: USDC per byte per day
    details: Cost varies by message size and retention period configuration
    url: https://docs.xmtp.org/fund-agents-apps/calculate-fees

  - name: Congestion Fee
    description: >-
      Dynamic fee applied on top of base and storage fees during periods of
      high network activity. Acts as the network's economic demand-management
      mechanism. Fee increases automatically when network load is elevated
      and decreases when load normalizes.
    type: Dynamic
    unit: per-message
    currency: USDC
    estimate: variable
    estimateUnit: USDC per message (variable)
    details: >-
      Amount varies based on real-time network congestion. Zero during
      normal operation; increases proportionally with network load.
    url: https://docs.xmtp.org/fund-agents-apps/calculate-fees

  - name: App Chain Gas Fee
    description: >-
      Gas fees for transactions on the XMTP Layer-3 appchain (Chain ID 2020),
      which settles to Base via Arbitrum. Required for group creation/management,
      identity updates, node registration, and payer wallet operations. Gas is
      denominated in ETH and is typically sub-cent per transaction. Automatically
      managed through the XMTP Funding Portal.
    type: UsageBased
    unit: per-transaction
    currency: ETH
    estimate: 0.0001
    estimateUnit: USD per transaction (typical)
    details: >-
      Fractions of a US cent per on-chain transaction. Managed automatically
      via the Funding Portal for most developers.
    url: https://docs.xmtp.org/fund-agents-apps/calculate-fees

costEstimation:
  - name: Small App
    description: Startup or hobby app with moderate message volume
    users: 1000
    messagesPerUserPerMonth: 500
    totalMessagesPerMonth: 500000
    estimatedMonthlyCostUSD: 25
    notes: Based on $5 per 100,000 messages baseline; excludes storage and gas

  - name: Medium App
    description: Growing consumer app with active daily messaging
    users: 10000
    messagesPerUserPerMonth: 500
    totalMessagesPerMonth: 5000000
    estimatedMonthlyCostUSD: 250
    notes: Based on $5 per 100,000 messages baseline; excludes storage and gas

  - name: Large App
    description: High-volume consumer messaging or agent platform
    users: 100000
    messagesPerUserPerMonth: 500
    totalMessagesPerMonth: 50000000
    estimatedMonthlyCostUSD: 2500
    notes: >-
      Based on $5 per 100,000 messages baseline. Fees expected to decrease as
      global network volume reaches 1 billion messages/month milestone.

costOptimization:
  - tip: Minimize message payload size to reduce storage fees
  - tip: Use remote attachments for content over ~100KB to keep per-message costs low
  - tip: Monitor congestion fees and consider off-peak scheduling for bulk operations
  - tip: Pre-fund apps through the Funding Portal to avoid messaging interruptions
  - tip: >-
      Track message volume in aggregate; the network targets cost reduction as
      it scales toward 1 billion messages/month
  - tip: >-
      Use local XMTP node (xmtp/xmtp-local-node) for development to avoid
      incurring fees during testing

feeDistribution:
  description: >-
    In Phase 1 of the XMTP mainnet, 100% of collected fees are distributed
    between the XMTP Layer-3 appchain sequencer and the node operators who
    store and relay messages. No fees are retained by XMTP Labs.
  phase1:
    nodeOperators: 100%
    xmtpLabs: 0%
    notes: >-
      Fees split between L3 sequencer and node operators; exact split
      determined by network governance
  phase2:
    description: >-
      Token staking and emissions introduced; surplus fees used to buy back
      and burn tokens; token holders gain governance over fee distribution
  paymentMethod: USDC (USD Coin stablecoin on Ethereum/Base)
  fundingPortal: https://docs.xmtp.org/fund-agents-apps/calculate-fees