As some of you may already know, Unshield has been merged with Send. Depending on the receiving address users enter, fees will be different.
Out-network transactions (unshielding) will now also incur a cross-chain fee. This fee will take into account fees charged by the Incognito network, as well as those charged by the destination chain.
For all currencies, unshielding requires 2 actions – one to burn the privacy coins on the Incognito chain, and one to return the same amount of public coins to the external address indicated by the user.
Here’s what you can expect when you unshield
Total fee incurred: Incognito network fee + External network fee
The Incognito fee is incurred when privacy coins are burned - the typical in-network fee quoted by the app. The rest of the fee is based on the destination network fee, for example, Bitcoin or Ethereum.
Speed options: For BTC, users will be able to choose between fast speeds and faster speeds, paying more for the latter. Prices are dictated by the external network from publicly available sources and APIs.
For Ethereum-based currencies, there will only be one default speed option – fastest, as per etherscan.io. This is due to a history of high volatility on the Ethereum chain, and is necessary to ensure a traffic jam doesn’t occur for all transactions leaving the Incognito network. For currencies on other chains like Binance, Tomochain, etc., there will also be only one speed option, as there is little need to adjust fees for performance.
Currency options: For unshielding transactions (sending out of the Incognito network), users will be able to pay fees in the external network currency, say BTC or ETH, or its equivalent in PRV (according to current pDEX prices). The total amount quoted will include the Incognito network fee in whichever currency the user chooses.
For bigger coins with more liquidity on Incognito, say USDC, the same structure applies, but instead of ETH, users will be able to pay fees in the sending currency (based on its current ETH price). Users will be only able to pay fees in currencies with pDEX pools containing over 10,000 PRV. For currencies with smaller or no pools, PRV is the default. The external network fee will still determine the unshielding fee, but it will be payable in PRV.
Note: More generally, the out-network experience (both Shield and Unshield) is an ongoing research topic. This is not exhaustive, and we can expect to see improved versions and more options going forward.
You are now able to access Unshield from your Send screen, and the fee will change depending on whether the address you enter is an internal or external address. The fee quoted dynamically takes into account what the external network is currently charging.