<p>Maybe this post can help:</p>

<p><a href="https://thewiring.com/2017/05/19/ardor-fees-child-chain-fees-bundlers-forgers-lets-clarify/" rel="nofollow noreferrer">https://thewiring.com/2017/05/19/ardor-fees-child-chain-fees-bundlers-forgers-lets-clarify/</a></p>

<p>Hope it helps a bit</p>

<blockquote>
  <p>The idea behind Ardor is brilliant. And sometimes brilliant ideas
  require some time to be fully understood.</p>
  
  <p>One of the great features of Ardor is that there can be many child
  chains running under the blockchain infrastructure built on the Ardor
  nodes (main chain). At the release of the live Ardor software in Q3
  2017, all the functionalities of the current NXT will be implemented
  in the first Ardor child chain called Ignis.</p>
  
  <p>But one thing that is apparently not clear to everybody is how the
  fees structure looks like in the child chains and in the Ardor main
  chain. So let’s clarify.</p>
  
  <p>Let’s start from the Ardor main chain.</p>
  
  <p>Forging blocks on the Ardor main chain will work as today’s NXT
  forging. The Proof of Stake protocol allows the forging node with more
  tokens to have better chances to forge a block. Forging is the
  equivalent of mining in the NXT/Ardor world. The reward of a forged
  block is the sum of the transaction fees within that block.</p>
  
  <p>These blocks will contain transactions from the main chain and from
  the child chains. The Ardor main chain will be the only one forging
  and providing the blockchain infrastructure to all child chains.</p>
  
  <p>So that’s clear. Ardor’s forging process works as today’s NXT forging
  with the exception that there are also transactions from the child
  chains packed in the same blocks.</p>
  
  <p>Let’s now move to the child chains. Let’s take for example Ignis, the
  first child chain of Ardor.</p>
  
  <p>Users doing transactions within Ignis do not have to worry about Ardor
  fees. They can simply transfer Ignis from one account to the other,
  issue an Asset, send a message, etc by just paying a fee in Ignis. The
  child chain fees can change because they will be defined by the
  “bundlers”.</p>
  
  <p>So what is a “bundler”? A “bundler” is the link between the child
  chain and the main chain. It’s the one that collects the child chain
  fees and then pays the main chain (Ardor) to pack those transactions
  in a block.</p>
  
  <p>There will be bundlers for each child chain and anyone can setup a
  bundler as long the account holds some Ardor.</p>
  
  <p>Here is how the Bundler setup page looks like (example for Ignis):</p>
  
  <p>The field “Minimum Rate” is a multiplier for the defined Ardor fee for
  that specific transaction. The result of that multiplication will be
  the minimum transaction fee in child chain token users will have to
  pay so that the bundler will bundle their child chain transaction.</p>
  
  <p>“Fee Limit” is the total amount you want to spend in Ardor fees.</p>
  
  <p>“Overpay” is the extra you want to pay more in case of competing
  bundlers. This is a multiplier of what you will pay in terms of Ardor
  fee.</p>
  
  <p>Let’s hypothetically assume that these are the fixed prices for a
  couple of transaction in Ardor (still in development so let’s not be
  too picky with the exact amounts):</p>
  
  <p>Basic transaction (money transfer, sending message, etc): 0.1 Ardor
  Asset issuing: 1000 Ardor Now lets assume a bundler is set with these
  parameters:</p>
  
  <p>Minimum Rate: 10 Fee Limit: 200 Overpay: 0.1 Someone now sends a
  message to someone else in the Ignis child chain. The client will
  automatically set the fee to the minimum fee offered by the bundlers.
  Let’s assume that our bundler is the only one, then the fee that will
  be applied will be:</p>
  
  <p>0.1 Ardor fee x 10 Minimum Rate = 1 Ignis</p>
  
  <p>So the message will be delivered with 1 Ignis fee.</p>
  
  <p>The bundler then has to pay 0.1 Ardor + (0.1 Ardor x 0.1 Overpay) =
  0.11 Ardor</p>
  
  <p>Let’s set another bundler with these parameters:</p>
  
  <p>Minimum Rate: 1 Fee Limit: 5000 Overpay: 2 Someone issues an Asset on
  the Ignis child chain. Here is how the fees will look like:</p>
  
  <p>1000 Ardor fee x 1 Minimum Rate = 1000 Ignis</p>
  
  <p>So the Asset will cost 1000 Ignis to the user.</p>
  
  <p>The bundler instead will pay 1000 Ardor + (1000 Ardor x 2 Overpay) =
  3000 Ardor</p>
  
  <p>As the bundler has set a Fee Limit of 5000, it can afford to pay the
  3000 Ardor mentioned above and still have 2000 Ardor budget for the
  following “bundles”.</p>
  
  <p>Keep in mind that the bundler gets the child chain fees, and this is
  where it gets interesting. The bundlers will then have to follow the
  exchange rate between, for example, Ardor and Ignis and define the
  Bundler in a way that he/she can recover the expenses.</p>
  
  <p>Let’s assume that 1 Ardor = 1 Ignis in terms of value.</p>
  
  <p>Let’s suppose that we have a Bundler set in the following way:</p>
  
  <p>Minimum Rate: 1 Fee Limit: 1000 Overpay: 0 Someone sends a message and
  pays a fee of 0.1 Ignis (0.1 fixed Ardor fee multiplied by Minimum
  Rate 1) to the bundler.</p>
  
  <p>So the bundler received a value 0.1 Ignis and pays a 0.1 Ardor as the
  value of Ardor and Ignis, in this example are the same, then there is
  no loss and no gain for the Bundler.</p>
  
  <p>Assuming the same Bundler defined above, but the value of Ardor is 10
  times the value of Ignis, so you need 10 Ignis to buy 1 Ardor.</p>
  
  <p>In that case there would be a loss for the Bundler as it will receive
  0.1 Ignis fee but will pay 0.1 Ardor fee which is worth 10 times more. So in that scenario the Bundlers have to adjust their Bundler settings
  to be more reasonable financially, in this case a 0 gain/loss would be
  achieved by setting Minimum Rate to 10.</p>
  
  <p>This is where more Bundlers will have to compete to be the most
  attractive but also to make a little gain maybe. This will be defined
  by the market.</p>
  
  <p>I hope this example helps to understand the fee structure in Ardor,
  but please be aware that Ardor is still being developed so things
  might be different when it will go live.</p>
</blockquote>

CC BY-SA 3.0
2017-11-03T21:57:47.080Z
Sites die, best to copy paste the content here.
Patoshi パトシ
CC BY-SA 3.0
2017-11-03T20:00:00.523Z
2017-11-03T21:57:15.470Z
2017-11-03T21:57:15.470Z
TheWireMaster
<p>What do the bundling options mean in Ardor when you are bundling?</p>

<ul>
<li>Minimum Rate</li>
<li>Rate</li>
<li>Fee Limit</li>
<li>Overpay</li>
</ul>

<p><a href="https://i.sstatic.net/IWFuM.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/IWFuM.png" alt="enter image description here"></a></p>

<nxt><proof-of-stake><ardor><bundler>
How does bundling as a bundler in Ardor work?
Patoshi パトシ
# How does bundling as a bundler in Ardor work?

(Asked by: username_0 on 2017-11-02)

What do the bundling options mean in Ardor when you are bundling?

* Minimum Rate
* Rate
* Fee Limit
* Overpay

[![enter image description here](https://i.sstatic.net/IWFuM.png)](https://i.sstatic.net/IWFuM.png)

**Tags:** nxt, proof-of-stake, ardor, bundler


---

## 1 answers

### Answer by username_1 on 2017-11-03. Score: 1

Maybe this post can help:

<https://thewiring.com/2017/05/19/ardor-fees-child-chain-fees-bundlers-forgers-lets-clarify/>

Hope it helps a bit

> The idea behind Ardor is brilliant. And sometimes brilliant ideas
> require some time to be fully understood.
>
> One of the great features of Ardor is that there can be many child
> chains running under the blockchain infrastructure built on the Ardor
> nodes (main chain). At the release of the live Ardor software in Q3
> 2017, all the functionalities of the current NXT will be implemented
> in the first Ardor child chain called Ignis.
>
> But one thing that is apparently not clear to everybody is how the
> fees structure looks like in the child chains and in the Ardor main
> chain. So let’s clarify.
>
> Let’s start from the Ardor main chain.
>
> Forging blocks on the Ardor main chain will work as today’s NXT
> forging. The Proof of Stake protocol allows the forging node with more
> tokens to have better chances to forge a block. Forging is the
> equivalent of mining in the NXT/Ardor world. The reward of a forged
> block is the sum of the transaction fees within that block.
>
> These blocks will contain transactions from the main chain and from
> the child chains. The Ardor main chain will be the only one forging
> and providing the blockchain infrastructure to all child chains.
>
> So that’s clear. Ardor’s forging process works as today’s NXT forging
> with the exception that there are also transactions from the child
> chains packed in the same blocks.
>
> Let’s now move to the child chains. Let’s take for example Ignis, the
> first child chain of Ardor.
>
> Users doing transactions within Ignis do not have to worry about Ardor
> fees. They can simply transfer Ignis from one account to the other,
> issue an Asset, send a message, etc by just paying a fee in Ignis. The
> child chain fees can change because they will be defined by the
> “bundlers”.
>
> So what is a “bundler”? A “bundler” is the link between the child
> chain and the main chain. It’s the one that collects the child chain
> fees and then pays the main chain (Ardor) to pack those transactions
> in a block.
>
> There will be bundlers for each child chain and anyone can setup a
> bundler as long the account holds some Ardor.
>
> Here is how the Bundler setup page looks like (example for Ignis):
>
> The field “Minimum Rate” is a multiplier for the defined Ardor fee for
> that specific transaction. The result of that multiplication will be
> the minimum transaction fee in child chain token users will have to
> pay so that the bundler will bundle their child chain transaction.
>
> “Fee Limit” is the total amount you want to spend in Ardor fees.
>
> “Overpay” is the extra you want to pay more in case of competing
> bundlers. This is a multiplier of what you will pay in terms of Ardor
> fee.
>
> Let’s hypothetically assume that these are the fixed prices for a
> couple of transaction in Ardor (still in development so let’s not be
> too picky with the exact amounts):
>
> Basic transaction (money transfer, sending message, etc): 0.1 Ardor
> Asset issuing: 1000 Ardor Now lets assume a bundler is set with these
> parameters:
>
> Minimum Rate: 10 Fee Limit: 200 Overpay: 0.1 Someone now sends a
> message to someone else in the Ignis child chain. The client will
> automatically set the fee to the minimum fee offered by the bundlers.
> Let’s assume that our bundler is the only one, then the fee that will
> be applied will be:
>
> 0.1 Ardor fee x 10 Minimum Rate = 1 Ignis
>
> So the message will be delivered with 1 Ignis fee.
>
> The bundler then has to pay 0.1 Ardor + (0.1 Ardor x 0.1 Overpay) =
> 0.11 Ardor
>
> Let’s set another bundler with these parameters:
>
> Minimum Rate: 1 Fee Limit: 5000 Overpay: 2 Someone issues an Asset on
> the Ignis child chain. Here is how the fees will look like:
>
> 1000 Ardor fee x 1 Minimum Rate = 1000 Ignis
>
> So the Asset will cost 1000 Ignis to the user.
>
> The bundler instead will pay 1000 Ardor + (1000 Ardor x 2 Overpay) =
> 3000 Ardor
>
> As the bundler has set a Fee Limit of 5000, it can afford to pay the
> 3000 Ardor mentioned above and still have 2000 Ardor budget for the
> following “bundles”.
>
> Keep in mind that the bundler gets the child chain fees, and this is
> where it gets interesting. The bundlers will then have to follow the
> exchange rate between, for example, Ardor and Ignis and define the
> Bundler in a way that he/she can recover the expenses.
>
> Let’s assume that 1 Ardor = 1 Ignis in terms of value.
>
> Let’s suppose that we have a Bundler set in the following way:
>
> Minimum Rate: 1 Fee Limit: 1000 Overpay: 0 Someone sends a message and
> pays a fee of 0.1 Ignis (0.1 fixed Ardor fee multiplied by Minimum
> Rate 1) to the bundler.
>
> So the bundler received a value 0.1 Ignis and pays a 0.1 Ardor as the
> value of Ardor and Ignis, in this example are the same, then there is
> no loss and no gain for the Bundler.
>
> Assuming the same Bundler defined above, but the value of Ardor is 10
> times the value of Ignis, so you need 10 Ignis to buy 1 Ardor.
>
> In that case there would be a loss for the Bundler as it will receive
> 0.1 Ignis fee but will pay 0.1 Ardor fee which is worth 10 times more. So in that scenario the Bundlers have to adjust their Bundler settings
> to be more reasonable financially, in this case a 0 gain/loss would be
> achieved by setting Minimum Rate to 10.
>
> This is where more Bundlers will have to compete to be the most
> attractive but also to make a little gain maybe. This will be defined
> by the market.
>
> I hope this example helps to understand the fee structure in Ardor,
> but please be aware that Ardor is still being developed so things
> might be different when it will go live.

> **Comments:**
> **username_0**: Sites die, best to copy paste the content here.  

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