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Solana Co-Founder Clarifies SOL Burning Procedures As New Proposal Comes Up


Anna Martynova
cryptonews.net 07 December 2022 14:41, UTC
Reading time: ~2 m

A new proposal to change the charging mechanism on the Solana blockchain from co-founder Anatoly YAKOVENKO revealed a number of previously little-known ideas. Firstly, the proposal itself involves setting a dynamic base fee, calculated on the base of the current load on the SOL network, and charging a fee for each computing unit requested by a transaction. According to Yakovenko, the solution should reduce fees during periods of low network activity and, conversely, increase fees during increased load.

Thus, if the average load on the last eight blocks exceeds 50%, the base fee increases by 12.5% and vice versa. The minimum fee is retained, there is no maximum fee. Such changes are somewhat reminiscent of the Ethereum fee market, where they vary depending on the level of network load.

Due to the burning rule in the proposal, it initially seemed to users that there should be a SOL burning mechanism, but it turned out that this was not the case. The fact is that 50% of the fee collected in SOL is already subject to burning, Yakovenko said. Changing the fee mechanism will simply change the final amount of SOL burned to some extent.

Image: Medium

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