Solana looks like it will integrate a fees market similar to Ethereum
Anatoly Yakovenko, CEO of Solana Labs, made a proposal to introduce a fee market on Solana. This step aims to disable spam transactions and help users process urgent transactions quickly.
Solution for the problem Solana’s spam
Similar to other Layer 1 blockchains, it is likely that SOL will introduce a fee market as well.
In one offer On Jan. 28, SOL Labs CEO Anatoly Yakovenko came up with the idea on Github to launch a fee market on SOL to fight spam and help users prioritize transactions.
The proposed fee market mechanism would make multiple transactions from the same address increasingly expensive without increasing transaction costs for other users. Nodes must also forward a previously available transaction for processing before accepting higher priority transactions from the same address to prevent other accounts processing the transaction from being blocked.
In addition, the fee marketplace allows Solana users to add “tips” to the base transaction fee to process their transactions faster. Validators prefer to process transactions with “tips” because they can make more money than transactions without. Yakovenko also stated that some of the fees paid for proposals in the fee system can be burned while incentives for validation are fully maintained.
The proposed fee market is somewhat similar to other Layer 1 blockchains such as Ethereum. Last year, the leading smart contract network rolled out the EIP-1559 upgrade, which introduced a base fee for transactions. If Ethereum users want to make a transaction, they have to pay a minimal fee and can also give “tips” to the miners to get added to the block faster. Similar to Yakovenko’s proposed solution, Ethereum burns base fees on every transaction.
However, it is worth noting that Solana users do not necessarily have to pay high fees like Ethereum. Even with this market mechanism added, executing transactions on Solana is likely to cost a fraction of the cost compared to using the Ethereum mainnet.
“Put this proposal forward as soon as possible,” Yakovenko wrote at the top of his post, given the urgency of fixing network issues on Solana. Last week, Solana experienced severe network congestion due to the crypto market crash. The congestion prevented DeFi users from posting collateral on their loans, sparking a spate of liquidations.
Previously, Solana was also offline for 18 hours after trading bots flooded the network with token purchases from Raydium’s IDO. Since then, the network has often been extremely slow due to spam transactions, making it impossible to process a valid user’s transaction.
Since Yakovenko posted the proposal, the developers have discussed it a lot. They agreed that if implemented properly, the fee market would be a positive move for Solana. With the launch of a new product like Solana Pay, which has the potential to bring more users and traffic onto the network, creating a stable network that users can trust to process transactions becomes a priority for Solana’s developers be Labs.
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Solana looks like it will integrate a fees market similar to Ethereum
Anatoly Yakovenko, CEO of Solana Labs, made a proposal to introduce a fee market on Solana. This step aims to disable spam transactions and help users process urgent transactions quickly.
Solution for the problem Solana’s spam
Similar to other Layer 1 blockchains, it is likely that SOL will introduce a fee market as well.
In one offer On Jan. 28, SOL Labs CEO Anatoly Yakovenko came up with the idea on Github to launch a fee market on SOL to fight spam and help users prioritize transactions.
The proposed fee market mechanism would make multiple transactions from the same address increasingly expensive without increasing transaction costs for other users. Nodes must also forward a previously available transaction for processing before accepting higher priority transactions from the same address to prevent other accounts processing the transaction from being blocked.
In addition, the fee marketplace allows Solana users to add “tips” to the base transaction fee to process their transactions faster. Validators prefer to process transactions with “tips” because they can make more money than transactions without. Yakovenko also stated that some of the fees paid for proposals in the fee system can be burned while incentives for validation are fully maintained.
The proposed fee market is somewhat similar to other Layer 1 blockchains such as Ethereum. Last year, the leading smart contract network rolled out the EIP-1559 upgrade, which introduced a base fee for transactions. If Ethereum users want to make a transaction, they have to pay a minimal fee and can also give “tips” to the miners to get added to the block faster. Similar to Yakovenko’s proposed solution, Ethereum burns base fees on every transaction.
However, it is worth noting that Solana users do not necessarily have to pay high fees like Ethereum. Even with this market mechanism added, executing transactions on Solana is likely to cost a fraction of the cost compared to using the Ethereum mainnet.
“Put this proposal forward as soon as possible,” Yakovenko wrote at the top of his post, given the urgency of fixing network issues on Solana. Last week, Solana experienced severe network congestion due to the crypto market crash. The congestion prevented DeFi users from posting collateral on their loans, sparking a spate of liquidations.
Previously, Solana was also offline for 18 hours after trading bots flooded the network with token purchases from Raydium’s IDO. Since then, the network has often been extremely slow due to spam transactions, making it impossible to process a valid user’s transaction.
Since Yakovenko posted the proposal, the developers have discussed it a lot. They agreed that if implemented properly, the fee market would be a positive move for Solana. With the launch of a new product like Solana Pay, which has the potential to bring more users and traffic onto the network, creating a stable network that users can trust to process transactions becomes a priority for Solana’s developers be Labs.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
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