Cardano
$1.05 7.88%
ADA · 6d

Could Cardano fees be lowered before voting for lower fees is implemented?

Cardano has gained significantly in value in the past few months. About 250% in the last 30 days and 600% in the last 60 days as it increased from 15 cents to 90 cents per ADA. The 0.17 ADA transaction fee has increased from 2.5 cents to 6 cents to now 15 cents in that timeframe. If Cardano were to go up another 600% from here, the transaction fee would be about a dollar. Not a trivial amount, especially in developing countries, and we don't want fees to hinder adoption. Since the primary purpose of fees is to deter network spam and reward stakers, I believe that it would be safe for the network to reduce the minimum transaction fee of 0.17 ADA, perhaps to about 0.05 ADA plus or minus 0.02 in the short term. If others agree with having the fee reduced, what do you guys think would be an acceptable way to go about this? We are still some time from built-in voting to adjust the fee parameter, and between now and then it is possible ADA value will increase to a point the fees are unnecessarily high for deterring network spam. I was thinking we could propose the idea of using Project Catalyst as a temporary solution by submitting "zero funding poll proposals" with specific fee amounts, so that people can vote on proposals as polls. If this idea is accepted by the community and IOHK, we could submit the proposals for voting, see which fee number proposal has the most votes, and then IOHK implements it with hardfork combinator for a stress-free fee change. We could optionally minimize how often these fee changes happen to reduce misuse of Project Catalyst and how much mental bandwidth it takes from voters, i.e. specify in the proposals that the fees won't be changed more than once every 3 months, only if at least 200% price change has occurred since last fee change, and only have up to X number of such proposals (i.e. Keep current fees, 75% of current fees, 50% of current fees, 25% of current fees). I have misused another project's on-chain proposal and funding syste...
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