New Fees Format in Minter 2
TL;DR: All fees are pegged to the U.S. dollar, converted, and paid in BIP on the fly. Validators set them through voting. The costs are as follows: for transfers, $0.01; for swaps, $0.03; and for creating coins, from $10 to $100,000.
Years ago, when designing Minter blockchain, we had fees as one of our top priorities. Back then, users of many networks needed to have different types of tokens for different tasks, and to tell the truth, the problem for them is still there. We decided right away that all fees would be paid in BIP only and that any coin issued on our blockchain could be exchanged for it at the very time of transfer. Here’s how we can break down the stages of introducing different fee formats to offer the best solution, step-by-step:
- Coins that are backed by BIP can be used for paying fees
- Coins that are not backed by BIP can be used for paying fees
- Fees are set by validators so that there is a sound participation economy
- Fees are expressed in world’s major national currencies so that users and businesses enjoy the predictability of usage
Over 1.5 years that Minter exists, the first stage has already successfully proved its efficiency for users. More than 1,700 coins of the network can be freely moved and exchanged within the blockchain. And today, we are ready to announce how the remaining three steps will be taken so that any token can pay for its operations in dollar terms, thereby making the network more understandable to the global community and creating a healthy economy for validators and delegators.
In Minter 2, one of the most important features is paying fees with any coin, which greatly simplifies the products’ entrance onto the mass market. Moreover, one will also have the ability to pay fees with mirrored coins from other blockchains (USDC, USDT, wETH, wBTC, and so on). With these innovations, we have a chance to introduce a new format of fees and, accordingly, rewards for validators and delegators.
All fees in Minter 2 will be tied to the dollar equivalent. Validators will be able to vote to change those fees without having to hard fork the blockchain. They will also be able to vote for the coin against which these fees will be calculated (USDT, USDC, and other stablecoins). The fees will be charged in BIP, for which the coin that has been selected for payment will be instantly swapped.
The dollar price is derived from the BIP’s AMM (Automated Market Maker, like Uniswap) pool created in Minter 2. The purchase of BIP to pay fees happens in the same pool.
This innovation has three important points:
- Validators and delegators will be able to expect projected dollar income regardless of fluctuations in the price of any coin
- Network users will be able to pay fees in a predictable dollar equivalent
- The fee system will stabilize the BIP rate. Each fee payment is a BIP purchase. The lower the price, the more BIP goes toward the fee; the higher the price, the less
With the Minter 2 upgrade, we expect a significant increase in the number of coin transfer and swap operations because major digital assets will be available at the speed and ease like never before. For estimates, we will use 100,000 send and 100,000 swap daily transactions. And an additional 30 coin creation transactions monthly. For example, at a cost of a transfer being $0.01 and a swap $0.03, validators and delegators will receive a total of $120,000 in fees per month.
Fees for minting new coins will be updated as well (based on the length of ticker):
3 letters — $100,000
4 letters — $10,000
5 letters — $1,000
6 letters — $100
7–10 letters — $10
This will additionally bring delegators and validators $10,000–$30,000 each month.
All of the measures above bring clarity to operations that everyone makes: users, projects, validators, and delegators alike. Validators will be able to adjust fees for their delegators depending on their own infrastructure costs (this functionality will also arrive in Minter 2).
