Posts

Transaction fees: you prefer to pay in native coins or transferred tokens

avatar of @limbo2013
25
Review
@limbo2013
·
·
0 views
·
2 min read

Currently, every problem that we care about regarding Ethereum such as slow speed, blocks are full, many projects and users drop Ethereum to switch to BSC and TRON... are related to scalability, say simpler and more intuitive: transaction fees.

At the time I created this topic, Ethereum's average fee = 177 gwei ~ $7.78 to conduct 1 transaction in 90 seconds. This is a very high fee for the average user, and the user has the feeling of Ethereum as the most greedy robber.

However, we cannot blame Ethereum when Ethereum is defending the important criterion of blockchain which is decentralization with ~7000 nodes instead of 21 nodes like other blockchains. At the same time, when compared to other blockchains, their native coins price (TRX, BNB, ADA) are many times lower than ETH, which means that in the future if these native coins price goes up, the value of transactions fees will also grow.

So what is the problem? High transaction fees are not the problem. The problem for users is that they don't have enough native coins to transfer.

The development teams have created very good tokenomics for native coins: native coins are used to pay transaction fees, to raise capital, to store... to ensure the buying pressure helps the token price to be stable and increase up instead of falling to 0. However this creates complications for users: for example I have ALTS token in Metamask wallet, I have to buy ETH from an exchange, transfer ETH to Metamask wallet and use ETH to pay fees for the transaction to send 1 ALTS.

Do we have an alternative solution or not?

Scalability determines the speed and cost of transactions, we cannot change this, but we can change or add payment methods for transaction fees.

Tomochain - a blockchain from Vietnam, I am from Vietnam & always proud of this project, has proposed & applied a more convenient solution for users: users can choose to pay transaction fees by native coin (TOMO) or the token itself is transferred.

For example, I want to transfer 1000 AME but I don't have TOMO in my wallet, I just need to choose to use 0.05 USD in AME to pay the transaction fee and transfer 999.95 AME. Of course if I want to preserve 1000 AME, I can buy TOMO on the exchange and deposit it in my wallet.

Friends & I have a lot of low value tokens in ERC-20 wallet that need to be liquidated, but we don't have ETH in our wallet, which is really inconvenient in this situation. I think it would be better if blockchains allow users to use the transferred tokens to pay for transaction fees similar to that of the TomoZ protocol.

What do you think about this, will major blockchains be able to adopt this transaction fee payment method in the future? Or will they continue to keep the current regulation to push the native coin price?

Posted Using LeoFinance Beta