> For the complete documentation index, see [llms.txt](https://l1x-sdk.gitbook.io/l1x-foundation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://l1x-sdk.gitbook.io/l1x-foundation/l1x-technology-explained/l1x-reward-mechanism/resource-costing-model.md).

# Resource Costing Model

The cost of the resource allocated must be based on the equilibrium of initiation and validation. For the total number of transactions, there is an equal amount of demand based on the network.

Hence, Supply and Demand will be 1:1 with an error margin of 1(10%):1(10%) which will be corrected by the network.