Introducing: Non-Custodial Smart Contracts for ETH On-Chain Billing

August 8, 2023

TLDR — Figment’s On-Chain Billing Model for app users:

  • Keep 100% of Consensus Layer rewards – keep ALL of the consensus layer rewards earned by your validator
  • Non-custodial – you set the validator’s withdrawal address to a wallet you control
  • No ETH pooling – individual, audited smart contract so your ETH is never pooled with others
  • Automated, on-chain fee splitting – fees are paid on-chain automatically, eliminating the need for off-chain invoicing – Figment’s current fee is 30% of execution layer rewards

As part of our new app launch, Figment will be adopting an on-chain fee splitting model for users. This model brings together staker incentives and transparency with the automatic fees being collected only when your validator is selected to propose a block and earns execution layer rewards. Users retain all of the consensus layer rewards that their validators earn while Figment’s current fee is set at 30% of execution layer rewards and will be reviewed and updated on a quarterly basis. 

See Figure A for a visual guide to how this automation will work on-chain. 

Optimize your staking rewards by staking through Figment’s non-custodial infrastructure available now via the Figment app. Figment collects a service fee for performing validator duties by using an on-chain fee splitting model. The fee is collected only from execution layer rewards earned. In this model, customers retain all of the consensus layer rewards that their validators earn when staking through the Figment app.

Figure A.

To collect the fee, Figment will deploy an individual smart contract for each user to provide automated, and simplified billing. The smart contract allows rewards earned via ETH’s execution layer, including MEV, tips, and priority fees to be paid directly to the customer, after removing Figment’s service fee. The customer retains 70% of these rewards, while Figment’s keeps the remaining 30% as a service fee.

Figment’s Distinctive Benefits

Figment’s on-chain billing smart contract is non-custodial, never pools customer tokens, and allows you to retain all of your earned consensus layer rewards:

  • Truly Non-Custodial – with Figment, you set the validator’s withdrawal address to an address you control. Unlike with other staking providers where you lose control of your validator’s withdrawal address and the custody of your ETH.
  • No Pooling – with Figment, each customer gets their own audited smart contract. With other staking providers, you share smart contracts with other users and pool your ETH when you stake.
  • Keep 100% of Consensus Layer Rewards – with Figment, keep all of the consensus layer rewards earned by your validator. With other staking providers, you pay a share of all the rewards your validator earns.
  • Optimized Execution Layer Rewards – Figment uses multiple MEV builder relays to ensure MEV rewards are earned and optimized

Still have questions about Figment’s on-chain fee splitting model? See the representative example below.

As staking infrastructure experts, we identified user pain points in managing staking positions and tracking stake and rewards balances across different systems and applications and created the Figment app to consolidate those activities within a single dashboard simplifying the user experience. 

Sign up or watch our video overview.


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