๐ฆ Network Congestion:
This slider controls how congested the blockchain network is. Congestion represents how many blocks are being filled with transactions. A network running at 100% congestion is processing the maximum possible number of transactions per day.
In Kaspaโs case, this is based on block throughput (e.g., 30,000 txs per second at 100 BPS). Higher congestion means higher total daily transactions, which increases fee revenue / Day.
๐ Date:
This slider allows you to scrub through hypothetical dates or preset moments in time for educational and scenario-building purposes. It may also be used to anchor assumptions like fee environments or market states in future revisions of this calculator.
๐ต Average Fee Rate: USD (per Single Transaction):
This value determines the average fee paid for a single transaction. For example, if this is set to $10 and 1 million transactions occur, the total fee revenue / Day is $10 million. This field is used to compute the Fee Revenue / Day value. Kaspaโs scalability allows for lower fee rates with higher throughput.
๐ฆ Market Cap:
Represents the total market capitalization of the asset being secured (e.g., Bitcoin or Kaspa). This is a critical input, as the calculator uses it to derive the suggested minimum SECURITY BUDGET / Day โ defined here as 2% of the market cap per year, divided by 365 to find the daily minimum.
๐จ SECURITY BUDGET REQUIREMENT =
This red panel shows an adjustable annual SECURITY BUDGET / Day (0.5%โ1.5%), defaulting to 1.5% as a baseline for defending a proof-of-work blockchain. It divides the chosen percentage of the market cap by 365 to estimate the daily revenue miners must earn to keep the network secure against a 51% attack. If daily miner revenue is below this threshold, the network may be economically vulnerable to attacks.
๐ถ Block Reward / Day:
The amount miners receive from new coins being minted (i.e., inflationary issuance). In Bitcoin, this amount halves approximately every 4 years. In Kaspa, it reduces gradually every month. Block reward / Day is a fixed calculation independent of fee activity and is added to miner revenue.
๐ฉ Fee Revenue / Day:
The total amount miners earn from transaction fees. It is calculated as:
Fee Revenue / Day = Number of Transactions ร Fee Rate
This is directly influenced by network congestion and average fee rate. In a healthy system, this value should rise over time to replace falling block reward / Days.
๐ฐ Daily Miner Revenue:
This is the total compensation miners receive per day. It is the sum of:
Daily Miner Revenue = Block Reward / Day + Fee Revenue / Day
This figure must ideally meet or exceed the SECURITY BUDGET / Day Minimum to ensure network security is economically sustainable.
๐ Congestion Slider: Increases or decreases daily transactions as a percent of max capacity (set by BPS level). Affects fee revenue / Day.
๐ Market Cap Slider: Adjusts total network value. Directly affects the 2% annual SECURITY BUDGET / Day calculation.
๐ Fee Rate Slider: Modifies the average fee per transaction. Combined with congestion, it determines fee revenue / Day.
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Security Budget / Day = (SB% per year ร Market Cap) / 365
Daily Miner Revenue = Block Reward / Day + Fee Revenue / Day
Fee Revenue / Day = Transactions per Day ร Fee per Tx
Transactions per Day = MaxTPS(BPS) ร 86,400 ร Congestion%
MaxTPS(BPS)
is preset-dependent.Transactions per Day
capacity changes.~~~~~~~~~~~~~~~~~~~~~~~~
SECURITY BUDGET / Day = Miner Revenue
~~~~~~~~~~~~~~~~~~~~~~~~
Miner Revenue
=
Block Reward / Days
+
Fee Revenue / Day
~~~~~~~~~~~~~~~~~~~~~~~~
Historical analysis suggests that approximately 2โ3% of Bitcoinโs market cap has been sufficient to protect 51% of the networkโs hash power.
For Kaspa, with its identical 51% BFT design, this SECURITY BUDGET / Day estimate applies exactly the same.
โSECURITY BUDGET REQUIREMENT =โ calculates a 2% SECURITY BUDGET / Day. Without this, PoW networks are potentially unstable.
If the market cap is $1 trillion, then roughly $20 billion per year (or about $54.8 million per day) has historically been sufficient to deter a 51% attack.
If the market cap reaches $100 trillion, then a proportionate SECURITY BUDGET / Day would be around $2 trillion per year (or about $5.48 billion per day).
This isnโt wasted spending โ it funds infrastructure. Unlike defending the U.S. dollar through military force, PoW SECURITY BUDGET / Days largely support renewable energy mining. The result? More clean energy production, economic empowerment, and a monetary system that uplifts global prosperity.