This article was first published on Loom Network - Medium
We’ve always touted fee-free transactions on Basechain as one of its big selling points when compared to Ethereum.
Fee-free transactions are great for users because they can start interacting with Basechain before acquiring LOOM tokens, which makes it a lot easier to onboard new users that may not be familiar with how blockchains work, or how tokens can be obtained and stored safely. While fee-free transactions are great for users, they’re not so great for the validators that run the hardware and pay for all the CPU usage, storage, and bandwidth costs associated with processing Basechain transactions. Currently, validators earn some rewards for processing transactions, and those rewards are paid out of a pool of LOOM tokens that Loom Network has allocated for that purpose, but the rewards aren’t sufficient to offset all the costs validators incur.
For a while it made sense to have fee-free transactions to grow our user base, but it was never going to be sustainable in the long term. To ensure that Basechain becomes self-sustaining, we’ll be introducing a variety of usage-based fees.
To start with, the document management platform we’re building on top of Basechain for health providers and government institutions will have a number of fees, payable in LOOM, including:
- Fees for storing authenticated documents viewable by the public
- Fees for storing private documents viewable only by authorized parties
- Fees for storing time-bound documents and extending their lifetime
- Surcharges for storing large documents, e.g. PDFs with official stamps and signatures
Furthermore, in the next version of the Loom Protocol, we’re going to introduce transaction fees. Unlike Ethereum, the fees will be payable by dapp developers rather than end-users, and those fees will then be paid out to validators to cover their running costs. This means that end-user onboarding on Basechain can remain fairly simple, ...
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Loom Network - Medium