In a recent development, the TON Foundation has put forth a new proposal aimed at optimizing transactions on its network. The proposal suggests that a portion of the transaction fees be burned, while the remaining amount is transferred to validators as usual. Currently, the proposal suggests a burn rate of 50%, but the final decision will depend on the consensus reached by the validators and the community.
This proposed mechanism bears similarities to Ethereum’s EIP-1559 fee model, which aims to strike a balance in the gas fees users have to pay for transactions. Under the existing model, validators are incentivized to prioritize higher gas fees for verification, leading to a drawback where users end up paying exorbitant fees for a single transaction.
Kirill Emelyanenko, a core developer at TON Foundation, commented on the proposal, stating, “In the short term, the inflation reduction impact of the burning proposal seems modest, estimated at around 350-400 Toncoins per day, while the daily issuance rate is 71,000 Toncoins. However, as the network’s volume increases, this figure has the potential to significantly rise, resulting in observable inflation reduction in both the total and circulating supply.”
Currently, the proposal is actively being discussed within the validator community. It is important to note that the staking rewards for validators will remain intact under this proposal.
The introduction of transaction burning aims to bring about several benefits to the TON network. By burning a portion of the transaction fees, the overall supply of Toncoins in circulation can be reduced, which may help maintain a healthy balance between supply and demand. Additionally, by discouraging excessive gas fees, this proposal seeks to make transactions more affordable and accessible to users.
However, the implementation of such a mechanism also raises questions and concerns within the community. Discussions are ongoing to address issues related to the potential impact on validators’ revenue and the overall network stability. Striking the right balance between burning fees and maintaining a sustainable ecosystem is crucial for the success of this proposal.
As the TON Foundation continues to engage with the validator community and gather feedback, the future of transaction burning on the TON network remains uncertain. Nevertheless, this proposal highlights the foundation’s commitment to improving network efficiency and creating a more user-friendly environment for its growing user base.
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