> For the complete documentation index, see [llms.txt](https://koova.gitbook.io/koova-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://koova.gitbook.io/koova-whitepaper/business-strategy/business-model.md).

# Business Model

## Revenue Model

Koova makes money by charging a small fee for proof verification. This fee is shared with the validators who maintain the system. The model is designed to be sustainable without extracting value from users.

***

### Pricing Structure

* **Type 0 proofs:** Minimal cost (local computation)
* **Type 1 proofs:** $0.01-0.05 per proof
* **Type 2 proofs:** $0.10-0.50 per proof

{% hint style="info" %}
For most transactions, the verification fee is 0.1-0.5% of transaction value. This is cheaper than chargeback fees (typically 1-3%) and fraud losses.
{% endhint %}

***

### Revenue Streams

* **Proof verification fees (shared with validators):** The primary revenue source. Every time a proof is generated or verified, a small fee is charged. This fee is split between Koova and the validators who maintain the system.
* **Premium features (advanced fraud detection, custom proof types):** For merchants who want advanced features, we offer premium tiers with enhanced fraud detection, custom proof types, and priority support.
* **Enterprise support (SLA guarantees, dedicated infrastructure):** For large enterprises, we offer dedicated support, custom integrations, and SLA guarantees.

***

### Unit Economics

Based on our projections:

* Cost per proof: $0.001-0.01 (infrastructure, validator rewards, overhead)
* Revenue per proof: $0.01-0.50 (depending on proof type)
* **Gross margin: 80%+**

This is highly profitable at scale.

***

### Sustainability

Unlike competitors that extract value through high fees or lock-in, Koova’s model is designed to be sustainable without rent-seeking. We make money when the system works well, not by charging exorbitant fees or locking in customers.


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