“Chain fees leave a bad impression vs inflation. Fees are visible, inflation is hidden. People get the impression that fees must be minimized, but the system is designed around them. Fees remind people of middleman rent, but it’s actually a direct support for the system’s security”


“Chain fees leave a bad impression vs inflation. Fees are visible, inflation is hidden. People get the impression that fees must be minimized, but the system is designed around them. Fees remind people of middleman rent, but it’s actually a direct support for the system’s security”



View Reddit by wallyjo3View Source

10 comments

  1. AutomaticMarionette - Reply

    > but it’s actually a direct support for the system’s security.

    This is what I don’t get about the feeless DAG currencies. If transacting is free, why can’t an attacker write a trivial script to bounce coins around different addresses to overload the network?

    The answer for IOTA is that there is a small amount of PoW that needs to be done for each transaction, but if that’s the case, it’s not really feeless, the fee is just extrinsic to the system, i.e. your electricity bill.

  2. MountainKey - Reply

    Nah, verifying the blockchain lets you trust the system.

    Mining is competition for issuing money, and fixing the history under a computational burden.

  3. go1111111 - Reply

    Fees without any inflation means only people who are transacting pay for network security. Hodlers end up being subsidized by transactors.

    It’s possible that this will work out fine, but there are drawbacks.

  4. token_dave - Reply

    The same can be said for credit card fees – also invisible to the consumer. They don’t realize they’re paying an extra 3% for goods to offset the merchant’s processing costs.

  5. igadjeed - Reply

    No, really it is just middleman rent

    > direct support for the system’s security

    This line has been common since the mempool congestion disappeared. Feed the poor starving miners! Low fees are unfair!

    Transaction fees add no security benefit to Bitcoin

  6. edtatkow - Reply

    Transaction fees are payed by the users of transactions. Mining fees are payed (indirectly) by the hodlers.

  7. Koinzer - Reply

    Anyone comparing fees with inflation really does not have a clue what is talking about, and should be promptly ignored.

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