Solana Looks to Incorporate Fee Market Akin to Ethereum

Anatoly Yakovenko, CEO of Solana Labs, has submitted a proposal to introduce a fee market to Solana. This move aims to discourage spam transactions while allowing users to process urgent transactions quickly.

Solana’s Spam Solution

Solana may follow other Layer 1 blockchains by introducing a fee market.

At Github’s proposal on January 28, Solana Labs CEO Anatoly Yakovenko proposed the idea of ​​introducing a toll market to Solana to combat spam and help users prioritize transactions. ..

The proposed tariff market mechanism will make multiple transactions from the same address increasingly expensive without increasing the transaction costs of other users. Also, the node must forward previously available transactions to processing to prevent one person from processing transactions in another account before accepting a higher priority transaction from the same address. ..

In addition, in the fee market, Solana users will be able to add chips to their base transaction fees to process transactions faster. Validators prioritize the processing of transactions with chips, as they are more profitable to process than transactions without chips. Yakovenko also said that some of the fees paid under the proposed fee structure could be burned while maintaining proper validator incentives.

The proposed tariff market is somewhat comparable to that found on other Layer 1 blockchains like Ethereum. Last year, a major smart contract network shipped an upgrade called EIP-1559, which introduced a base transaction fee. If you are an Ethereum user and want to make a transaction, you have to pay the minimum fee. You can also add hints to help miners quickly add to the block. Similar to the solution proposed by Jacobenco, Ethereum burns the base charge on every transaction.

However, keep in mind that when you introduce a fee market, Solana does not necessarily suffer from the same high costs as Ethereum. Even with the addition of market mechanisms, trading Solana can be done at a fraction of the cost of using the Ethereum Mainnet.

“Please ship as soon as possible,” Yakovenko wrote at the beginning of the post, indicating the urgency to fix Solana’s network problems. Solana experienced high network congestion last week as the crypto market plunged. Due to the blockage, DeFi users were unable to replenish their loan collateral, resulting in a surge in liquidation.

Previously, Solana was knocked offline for 18 hours after a trading bot flooded the network with a transaction to buy tokens from Raydium’s early DEX offering. Since then, spam transactions have repeatedly slowed down the network to prevent legitimate users from processing the transaction.

Developers have been discussing it in detail since Yakovenko posted his proposal. The consensus is that if the fee market is implemented correctly, it will be a positive move for Solana. The launch of new products such as Solana Pay is likely to bring more users and traffic to the network, so creating a reliable and stable network for users to handle transactions is a Solana Labs developer. Is a top priority for us.

Disclosure: At the time of writing this feature, the author owned SOL, ETH, and several other cryptocurrencies.