Zcash Proposes Dynamic Fee Plan to Prevent User Exclusion
Zcash has continued its rally with a 12% increase in the price of ZEC, driven by discussions surrounding a new fee proposal aimed at preventing user exclusion. The proposal, introduced by Shielded Labs, suggests a dynamic fee market for Zcash to address rising transaction costs and network congestion.
The proposed system utilizes an average fee per action observed over the previous 50 blocks, incorporating a priority lane during high-demand periods. This change aims to maintain Zcash's privacy features while avoiding complex protocol redesigns.
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"The proposed mechanism introduces a simple, stateless dynamic fee model based on 'comparative values', which is the average fee per action observed over the last 50 blocks."
Developers believe that with the recent surge in ZEC, the new retail onboarding, and the emergence of digital Zcash asset treasuries, the current static fee model is becoming increasingly untenable. Users have reported rising transaction costs in ZEC values, highlighting the rigidity of fees as token prices increase.
| Date | ZEC Price | Price Change |
|---|---|---|
| Tuesday | $395 | +12% |
In summary, Zcash's proposed dynamic fee plan aims to adapt to market conditions while preserving user privacy, reflecting the growing need for flexibility in transaction costs as the network evolves.
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