From 66ff02d8323cb551e9d658a02be421ef394e24cf Mon Sep 17 00:00:00 2001 From: Kshitij Chaudhary <78124453+KshitijChaudhary666@users.noreply.github.com> Date: Thu, 2 May 2024 03:33:58 +0530 Subject: [PATCH 1/4] Update 20230323-transaction-fee.md Updating to introduce Transaction Fee Multiplier T --- governance/20230323-transaction-fee.md | 11 +++++++---- 1 file changed, 7 insertions(+), 4 deletions(-) diff --git a/governance/20230323-transaction-fee.md b/governance/20230323-transaction-fee.md index 23bd183d..af2fb2ee 100644 --- a/governance/20230323-transaction-fee.md +++ b/governance/20230323-transaction-fee.md @@ -39,7 +39,7 @@ Finally, Flow’s low transaction fee unfortunately makes FLOW use-cases less pe ## **Proposal** -Today, the functional specification of transaction fee on Flow looks as follows. +**Today**, the functional specification of transaction fee on Flow looks as follows. **Transaction fee = {inclusion fee + (execution effort * unit cost)} x surge** @@ -48,10 +48,13 @@ Today, the functional specification of transaction fee on Flow looks as follows. - *Surge = 1.0 (currently constant);* - *Execution Effort is variable based on transaction type, as [shown here](https://github.com/onflow/flow/blob/c05d847adf2f6fb509e42c17020484d7dd3e89bd/flips/20220111-execution-effort.md).* -**It is proposed that** +**The proposal** entails the addition of a new multiplier, alongside the surge multiplier, to the transaction fee calculation, resulting in the following formula: -1. *Inclusion fee is maintained as a constant, but increased 100x, from 1E-6 FLOW to 1E-4 FLOW for all transaction types* -2. *Unit Cost of Execution Effort is increased 100x, from 4.99E-8 FLOW to 4.99E-06 FLOW* +**Transaction fee = {inclusion fee + (execution effort * unit cost)} x surge x T** + +- Presently, the Flow network fundamentally supports the dynamic adjustment of transaction fees in response to network congestion. The surge factor ('S') facilitates fee modifications during congested periods, ensuring optimal network functionality. Although currently fixed at 1.0, adjustments to this value may be proposed through a FLIP in response to sustained periods of high network demand and saturation. +- Introducing a Transaction Fee Multiplier ('T') alongside the existing surge factor would additionally enhance the adaptability and responsiveness of transaction fees to economic conditions. Additionally, it would cater to future requirements for adjusting the unit cost of transactions on Flow, while also ensuring transparency, ease of understanding, and readability of the formula for our community members. +- **The value of 'T' will be set at 100** to increase the transaction fee by 100 times compared to the current rate, thus increasing costs of each transaction by 100x as shown in the table below. | Transaction type | Effort | Current fee (FLOW) | Proposed fee (FLOW) | Proposed increase | | --- | --- | --- | --- | --- | From 187a73fc6ec6c7e9d47b0ec5e31c5e1ca6a4c541 Mon Sep 17 00:00:00 2001 From: Kshitij Chaudhary <78124453+KshitijChaudhary666@users.noreply.github.com> Date: Thu, 9 May 2024 19:29:31 +0530 Subject: [PATCH 2/4] Update governance/20230323-transaction-fee.md Co-authored-by: Vishal <1117327+vishalchangrani@users.noreply.github.com> --- governance/20230323-transaction-fee.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/governance/20230323-transaction-fee.md b/governance/20230323-transaction-fee.md index af2fb2ee..2e09ba2b 100644 --- a/governance/20230323-transaction-fee.md +++ b/governance/20230323-transaction-fee.md @@ -52,7 +52,7 @@ Finally, Flow’s low transaction fee unfortunately makes FLOW use-cases less pe **Transaction fee = {inclusion fee + (execution effort * unit cost)} x surge x T** -- Presently, the Flow network fundamentally supports the dynamic adjustment of transaction fees in response to network congestion. The surge factor ('S') facilitates fee modifications during congested periods, ensuring optimal network functionality. Although currently fixed at 1.0, adjustments to this value may be proposed through a FLIP in response to sustained periods of high network demand and saturation. +- Presently, the Flow network fundamentally supports the dynamic adjustment of transaction fees in response to network congestion. The surge factor ('S') facilitates fee modifications during periods of network congestion, ensuring optimal network functionality. Although currently fixed at `1.0`, adjustments to this value can be proposed through a FLIP in response to sustained periods of high network demand and saturation. - Introducing a Transaction Fee Multiplier ('T') alongside the existing surge factor would additionally enhance the adaptability and responsiveness of transaction fees to economic conditions. Additionally, it would cater to future requirements for adjusting the unit cost of transactions on Flow, while also ensuring transparency, ease of understanding, and readability of the formula for our community members. - **The value of 'T' will be set at 100** to increase the transaction fee by 100 times compared to the current rate, thus increasing costs of each transaction by 100x as shown in the table below. From dd8e4474786f45af87dcde435b720b67c54059fd Mon Sep 17 00:00:00 2001 From: Kshitij Chaudhary <78124453+KshitijChaudhary666@users.noreply.github.com> Date: Thu, 9 May 2024 19:30:05 +0530 Subject: [PATCH 3/4] Update governance/20230323-transaction-fee.md Co-authored-by: Vishal <1117327+vishalchangrani@users.noreply.github.com> --- governance/20230323-transaction-fee.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/governance/20230323-transaction-fee.md b/governance/20230323-transaction-fee.md index 2e09ba2b..8c94004e 100644 --- a/governance/20230323-transaction-fee.md +++ b/governance/20230323-transaction-fee.md @@ -53,7 +53,7 @@ Finally, Flow’s low transaction fee unfortunately makes FLOW use-cases less pe **Transaction fee = {inclusion fee + (execution effort * unit cost)} x surge x T** - Presently, the Flow network fundamentally supports the dynamic adjustment of transaction fees in response to network congestion. The surge factor ('S') facilitates fee modifications during periods of network congestion, ensuring optimal network functionality. Although currently fixed at `1.0`, adjustments to this value can be proposed through a FLIP in response to sustained periods of high network demand and saturation. -- Introducing a Transaction Fee Multiplier ('T') alongside the existing surge factor would additionally enhance the adaptability and responsiveness of transaction fees to economic conditions. Additionally, it would cater to future requirements for adjusting the unit cost of transactions on Flow, while also ensuring transparency, ease of understanding, and readability of the formula for our community members. +- While the surge factor accounts for network usage, it is agnostic of economic conditions. Introducing a Transaction Fee Multiplier (`T`) alongside the existing surge factor would enhance the adaptability and responsiveness of transaction fees to economic conditions in addition to network saturation. It would cater to future requirements for adjusting the unit cost of transactions on Flow in response to market forces. Keeping the multiplier separate, ensures transparency, ease of understanding, and readability of the formula for our community members. - **The value of 'T' will be set at 100** to increase the transaction fee by 100 times compared to the current rate, thus increasing costs of each transaction by 100x as shown in the table below. | Transaction type | Effort | Current fee (FLOW) | Proposed fee (FLOW) | Proposed increase | From 9629db9ee8d60314c50fe664e57bd6c076b9ce63 Mon Sep 17 00:00:00 2001 From: Kshitij Chaudhary <78124453+KshitijChaudhary666@users.noreply.github.com> Date: Thu, 9 May 2024 19:34:01 +0530 Subject: [PATCH 4/4] Update 20230323-transaction-fee.md Highlighting 'T' --- governance/20230323-transaction-fee.md | 6 +++--- 1 file changed, 3 insertions(+), 3 deletions(-) diff --git a/governance/20230323-transaction-fee.md b/governance/20230323-transaction-fee.md index 8c94004e..17effe6a 100644 --- a/governance/20230323-transaction-fee.md +++ b/governance/20230323-transaction-fee.md @@ -1,4 +1,4 @@ -# FLIP: Revisiting Flow Transaction fee +# FLIP-74: Revisiting Flow Transaction fee | Status | Proposed | :-------------- |:---------------------------------------------------- | @@ -52,9 +52,9 @@ Finally, Flow’s low transaction fee unfortunately makes FLOW use-cases less pe **Transaction fee = {inclusion fee + (execution effort * unit cost)} x surge x T** -- Presently, the Flow network fundamentally supports the dynamic adjustment of transaction fees in response to network congestion. The surge factor ('S') facilitates fee modifications during periods of network congestion, ensuring optimal network functionality. Although currently fixed at `1.0`, adjustments to this value can be proposed through a FLIP in response to sustained periods of high network demand and saturation. +- Presently, the Flow network fundamentally supports the dynamic adjustment of transaction fees in response to network congestion. The surge factor (`S`) facilitates fee modifications during periods of network congestion, ensuring optimal network functionality. Although currently fixed at `1.0`, adjustments to this value can be proposed through a FLIP in response to sustained periods of high network demand and saturation. - While the surge factor accounts for network usage, it is agnostic of economic conditions. Introducing a Transaction Fee Multiplier (`T`) alongside the existing surge factor would enhance the adaptability and responsiveness of transaction fees to economic conditions in addition to network saturation. It would cater to future requirements for adjusting the unit cost of transactions on Flow in response to market forces. Keeping the multiplier separate, ensures transparency, ease of understanding, and readability of the formula for our community members. -- **The value of 'T' will be set at 100** to increase the transaction fee by 100 times compared to the current rate, thus increasing costs of each transaction by 100x as shown in the table below. +- **The value of `T` will be set at 100** to increase the transaction fee by 100 times compared to the current rate, thus increasing costs of each transaction by 100x as shown in the table below. | Transaction type | Effort | Current fee (FLOW) | Proposed fee (FLOW) | Proposed increase | | --- | --- | --- | --- | --- |