Solana Labs CEO Anatoly Yakovenko has proposed to introduce a fee-based marketplace on Solana that aims to neutralize spam transactions and help users handle urgent transactions quickly.
The proposed fee market mechanism would make multiple transactions from the same address increasingly expensive without increasing transaction fees for other users.
Nodes will also be required to forward previously available transactions for processing before accepting higher priority transactions from the same address to prevent one from locking other accounts that process their transactions.
Additionally, the fee marketplace will allow Solana users to add a tip to the top of the base transaction fee to process their transactions faster.
Validators will prefer to handle transactions with tips when they can make more money processing them than transactions without tips. Yakovenko emphasized that part of the fees paid in the proposed fee system could be burned while maintaining adequate authentication incentives.
The proposed fee market is comparable to that found on other Layer 1 blockchains such as Ethereum. Last year, the Ethereum network implemented an upgrade called EIP-1559 that introduced a base fee for transactions.
When Ethereum users want to make a transaction, they have to pay a minimum fee and can also add tips to miners for faster processing. Similar to Yakovenko’s proposed solution, Ethereum burns base fees on every transaction. It is worth noting, however, that Solana would not necessarily incur high fees like Ethereum if it were to introduce a fee-based marketplace.
Last week, Solana experienced high network congestion due to the crypto market crash.
The congestion prevented DeFi users from depositing their loan collateral, triggering a flurry of liquidations.
Since Yakovenko posted his proposal, the developers have discussed it hotly. The general consensus is that a fee marketplace, if implemented properly, would be a positive move for Solana.
In another development, yesterday, Solana Labs, announced Solana Pay, the new payment solution for the world’s 6th largest blockchain ecosystem. This product is jointly developed by Solana Labs with Circle (the company that issues USDC), payment processors Citcoin, Checkout.com and is supported by wallet platforms on Solana including Phantom, FTX and Slope.
1/ Introducing Solana Pay, a decentralized, secure, and open-source payments protocol for the next generation of merchant payments ?#SolanaPay https://t.co/mI2hMIh79G
— Solana (@solana) February 1, 2022
With Solana Pay, stores and businesses can easily accept payments in SOL, USDC stablecoin Solana version, and many other SPL-compliant tokens.
Solana Labs claims that the transaction will be done instantly, and the user will receive the money in real time. Transaction fees will also be significantly reduced compared to other blockchains thanks to the low transaction fees of the Solana network.
With the launch of a new product like Solana Pay that has the potential to bring more users and traffic to the network, creating a stable network where users can trust to process transactions will be a top priority for Solana Labs developers.
At the time of writing, the SOL native token price is up over 7% and trading at $109.84.
Source: TradingView
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