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Withdrawal and Fees

#1

How does a Withdrawal work with the Incognito App:
Mechanically what do you click on?
Who pays the fees for the transfer?
If the User pays the fees how are they assessed in PRV or native token?
Is all of this information on screen at the time of the withdrawal?
Is the transaction shielded?
Is there a step by step FAQ for this?

Thank you.

#2

Hello and welcome to incognito. There are posts with far more detail but I’ll try to give you a short answer to all of your questions, but answering in a different order:

  1. When you withdraw, leaving the incognito network, your token on the incognito blockchain (pUSDT or pBTC, for example) is burned.
  2. The native coin is then sent from incognito’s main wallet holding all of the pUSDT or pBTC for example. Ethereum based assets are in a smart contract.
  3. The transaction on-chain shows your wallet > temporary wallet for shielding > incognito storage wallet > new wallet you requested a withdraw to. It breaks the chain of your two wallets on-chain as there is no direct link. However, if you shield and unshield at approximately the same time and/or use the same amount of transaction then it would be much easier to conclude (but not verify) that you are the original owner of the coins you shielded. The longer you stay in incognito the better, generally.
  4. To request a withdraw click ASSETS in the app, then select the asset you want to withdraw, then click “Send.” From here once you enter a new wallet address the app will detect if you’re staying with incognito blockchain or going off network and will calculate the fees accordingly.
  5. Withdraw fees on ethereum are outrageous due to incognito’s use of a smart contract. Keep that in mind.
  6. For all the popular coins a user can pay the unshielding fee in PRV or the native token.

I hope this helps!

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#3

Thank you so much this really was amazingly helpful. One follow up question. What is the unshielding fee and where does it come in in the process of withdrawal if at all? point 3?

#4

The unshielding fee can be seen based on the current fees for using ethereum (very high), bitcoin (medium high), litecoin (very low).

Just type a test address into the app and it will calculate the withdraw fee. Also, a member here made this site which lists the current withdraw fees at the top: https://inquery.tipcoin.app/

Right now, for example, ethereum based withdraw is 24.94 PRV or 69.80 USDT.

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#5

Ethereum fees are high by default, and a bit higher when withdrawing (unschielding) from Incognito to an external chain due to the usage of smart contracts. Keep in mind the fee is paid to the Ethereum miners, there is no gain for Incognito.

The fees for on-chain transactions (within the Incognito environment) are next to nothing.

Use the search function to find out about the faucet in case the app tells you, your funds are not sufficient. Also, read the screens carefully, some deposits have a minimum amount.

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#6

Could you explain this in a bit more detail? How would this occur? What must I do to prevent it?

#7

If you shield 1582.83 USDT (a very specific amount) and then a few minutes withdraw the same 1582.83 USDT, it’s going to be quite obvious it’s the same person doing this (although you can’t prove it). The longer you wait in between shield and unshield the higher likelihood no analytics can connect the dots—though if you deposit and withdraw totally separate amounts it would be nearly impossible to relate the shield and unshield.

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#8

That makes even more sense thank you!

#9

Hi Jamie, at this moment ETH withdraw is 74 PRV ($ 173) when gas price ~ 85 Gwei. It is too much expensive. I do not know any other blockchain with so high fee. What is happening ?

#10

~85 gwei is for normal eth transactions, incognito uses a smart contract which has higher fees (check uniswap fees for example)

1 Like