Monday, December 4, 2023

Solana set to introduce new fee prioritizing model.

To help mitigate the impact of on-demand apps and services, Solana is set to launch a new fee prioritizing model. Anatoly Yakovenko, the co-founder of Solana, says the model will not punish users with high fees across the entire network. This new model is based on a “neighborhood fees” technique. It doesn’t impact the wider network.

Yakovenko gave an outline of the new model on Twitter. He likened it to a switch saying there is only one light switch, a single bit or Boolean that everyone wants to flip at the same time. Yakovenko said the highest bidder gets to flip the switch and the price of the switch has nothing to do with how fast it flips or how many can be flipped at the same time. What matters is that two people want to flip that and are willing to pay the highest price for it. He explained that a specific NFT auction or orca AMM pool is one switch. The first trader to flip it gets to flip it first. As such, the trader needs to send a transaction early, and with a high enough bid to be put in front of the queue. Yakovenko believes the new feel model is awesome as its prices state vs. block space. It’s new and anything new in crypto is blood sweat and tears to roll out to production.

Gas fees on the Ethereum blockchain are incredibly expensive ranging from hundreds to thousands of dollars. And it gets more expensive with an NFT drop or token launch. But with Solana’s new model, fees are used to prioritize transactions within a certain app or protocol and not the whole network.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
RELATED ARTICLES

Most Popular