[Proposal] Long term strategy on fees: % based tx fees

[monsterer]

Percentage based fees are great because they enable micro-transactions and automatically levy a higher tax on those who are able to afford to pay more.

[fav]

I don't see a need. power users will upgrade their account, so fees are no issue.

[xeroc]

Resource-wise, a $2 transaction costs the same as a $1 transaction. So the current fee model is the most accurate.

Also, I don't want to pay 100x the fees for sending $100 as opposed to $1.

I could see marketing benefits, but the % model is decoupled from reality.

^^ This!

[roadscape]

Resource-wise, a $2 transaction costs the same as a $1 transaction. So the current fee model is the most accurate.

Also, I don't want to pay 100x the fees for sending $100 as opposed to $1.

I could see marketing benefits, but the % model is decoupled from reality.

[xiahui135]

% based fees allow spamming with tiny transactions.  So there would have to be a minimum fee.

the blockchain is not designed for some applications, such as pegging.

Because it cost to changes orders, to react to the price change.

[Ander]

% based fees allow spamming with tiny transactions.  So there would have to be a minimum fee.

[santaclause102]

I think it is safe to say the fee should never be more than 10% of the value transferred, but must be at least a min amount and at most a max amount. 

$10 for max fee.  $0.01 for min fee and 0.5% otherwise.

That would make it $0.50 to transfer $100. 


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How do you come to the conclusion that it needs an upper limit?
I would probably also suggest an upper limit but I would just go by the rule: As expensive as possible while still being cheaper then centralized exchanges / competitors today. BM said that something like that too on mumble a while ago. I wonder why % based fees where not part of the solution.

[Frodo]

The question that I have is how we can determine the value of a transaction? For example a rarely traded UIA can't be easily measured in USD or BTS.

[sittingduck]

I think it is safe to say the fee should never be more than 10% of the value transferred, but must be at least a min amount and at most a max amount. 

$10 for max fee.  $0.01 for min fee and 0.5% otherwise.

That would make it $0.50 to transfer $100. 


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[santaclause102]

I dont agree with the percentages, I think the % fee should decrease more drastically with higher volume as very high volume traders have extremely low fees.

But overall I really like this approach 

The actual numbers where just an arbitrary example...

[MrJeans]

I dont agree with the percentages, I think the % fee should decrease more drastically with higher volume as very high volume traders have extremely low fees.

But overall I really like this approach 

[santaclause102]

If the assumption is that (1) we want to keep fees as low as possible so to not deter anybody from using bitshares and (2) we want to maximize revenue (earn as much as possible from tx fees), I would argue that adopting a % based fee is the superior strategy.

Let's say we have 2 transactions tx where we overall want to maximize (1) and (2): Transaction (a) is transferring 1$ and transaction (b) is transferring 1 million $.

-> With a flat fee structure of let's say (simplified) 40 cents per tx we we would deter the users from transaction (a) and we would only earn 40 cents in total from the two transactions.

-> With a % based fee structure, let's say (decreasing % with increasing volume) it would be 10% (should be close to the networks actual costs the lower the volume gets) at 1 $ and 0.01 % at 1 million USD. The network would then earn 10 cents + 100 $.

Summary: A % based fee structure would help to bring the tx fees closer to the perceived value BitShares provides.