What am I proposing?
The proposal changes the value of transactions from 0.0001 ICP to a fixed value in USD $0.01 (or equivalent in current cycles so as not to take the USD as a reference). In each transaction the equivalent of $0.01 would be burned
Why am I proposing it?
Because I think that we must help reduce the impact of inflation in bear markets, in addition to helping to make the cost of the transaction more consistent regardless of the price of the token.
(I want to thank @smaug, (Scaling Transaction Fees) @THLO @diegop and @bogdanwarinschi for encouraging me to share this simple idea, although I think dfinity thought of everything and such a simple idea would seem like a joke compared to all the research out there on the price of a transaction but maybe it’s not such a bad idea)
Why can such a simple proposal work?
More complex ideas may come up related to dynamic cost values or cycle costs (I thought of more complex options), but I’ll leave all of that because I think keeping tokenomics simple and transparent serves us all. Fiat values are easy to understand and everyone measures everything in fiat values.
What impact does it have on current applications?
Basically the impact does not exist, since the transactions of any app need to increase exponentially for them to have an impact (possibly positive).
We must also reflect that at prices of $100 per ICP it would be exactly the same scenario.
What impact can it have in the long term?
The impact at current values with the number of current transactions will have almost no impact, this is long-term thinking, considering the expansion of the ecosystem and the volume of transactions of long-term applications (Games, Defi, social etc etc)
In the long term the positive points are:
- Decrease the volatility of the token price in the future.
- Help reduce inflation with low token prices (more tokens would be burned at low prices)
- Developers have a clearer long-term picture of the costs incurred by exponentially increasing the number of transactions.
I share a very simple table and graph where you can get an idea of the potential that you can have just by applying this proposal.
I appreciate any feedback you have!
Thank you very much!
I think it is related to what @Zane commented (Can the IC become deflationary?), this can help it to be truly deflationary in the event that the token drops a lot in price. Also @bjoernek was going to comment some related idea. Thank you very much !