When a wallet submits a Plutus transaction, it must attach collateral worth at least collateralPercentage / 100 times the transaction's fee. On a successful run, the collateral is untouched; on a phase-2 validation failure, the protocol consumes the full collateral instead of the regular fee, paying for the wasted node work.
Explore next
- CollateralAn ada amount a wallet locks aside when submitting a Plutus transaction, forfeited only if the script's on-chain validation fails.View term
- Smart ContractSelf-executing code stored on a blockchain that automatically enforces and executes agreement terms when predefined conditions are met.View term
- Plutus CoreCardano's on-chain smart-contract runtime. Higher-level languages (Plinth, Aiken) compile down to Plutus Core for execution.View term