Anatoly Yakovenko, CEO of Solana Labs, has proposed establishing a fee market on Solana. The measure is intended to deter spam transactions while also assisting users with expedited transaction processing.
Solana might follow the lead of other Layer 1 blockchains and include a fee market. In a Github proposal published on Jan. 28, Solana Labs CEO Anatoly Yakovenko proposed developing a fee market on Solana to prevent spam and assist users in prioritising transactions.
The suggested fee market system would gradually increase the cost of many transactions from the same address without raising the cost of transactions for other users. Additionally, nodes will be forced to execute previously available transactions before accepting additional high-priority transactions from the same address, preventing one individual from blocking the processing of transactions from other accounts.
Additionally, the fee market would enable Solana users to add a tip on top of the regular transaction charge in order to expedite the processing of their transactions. Validators would prefer tip-based transactions since they earn more than tip-based transactions. Additionally, Yakovenko claimed that a part of the proposed fee system’s fees might be burnt while still providing enough validator incentives.
The suggested cost structure is equivalent to that of other Layer 1 blockchains such as Ethereum. The dominant smart contract network released an update last year called EIP-1559 that included a basic transaction cost. When Ethereum users initiate a transaction, they must pay a small fee and optionally include a tip for miners to expedite the transaction’s inclusion in a block. Ethereum, like Yakovenko’s method, burns the basic fee on every transaction.
However, it’s worth noting that if Solana implemented a fee market, it would not necessarily face the same exorbitant expenses as Ethereum. Even with the addition of a market mechanism, conducting Solana transactions is anticipated to be a fraction of the cost of doing it through the Ethereum mainnet.
“Send this immediately,” Yakovenko said at the start of his message, emphasising the critical nature of resolving Solana’s network troubles. Solana’s network was severely congested last week when the cryptocurrency market fell. The snafu prohibited DeFi customers from increasing their loan collateral, resulting in a frenzy of liquidations.
Previously, Solana was taken down for 18 hours after trading bots saturated the network with transactions to purchase Raydium DEX tokens. Since then, the network has often slowed to a crawl as a result of spam transactions that prevent genuine users from processing their transactions.
Since Yakovenko’s suggestion was made, developers have had lengthy discussions about it. The agreement is that if done properly, a fee market would benefit Solana. With new products such as Solana Pay expected to attract more users and traffic to the network, Solana Labs’ engineers will place a premium on developing a reliable network that consumers can trust to conduct transactions.
Also Read: FTX Buys Liquid, A Crypto Exchange Approved By The Financial Services Agency Of Japan
Wallets