Cardano Explores New Mechanism to Make Transaction Fees Fair and Predictable
The Cardano (ADA) company has started looking into the feasibility of Stablefees. These would make it possible to have a base price for transactions in the crypto industry.
Cardano FIXES Transaction Fees
In an article posted by the IOHK, the firm credited with this crypto’s invention, future Stablefees would offer a pricing structure that is not only affordable but also predictable.
Cardano has been looking for a way to develop its present platform, especially its technique for system assets and ledger policies. Thus, integrating Stablefees in a seamless way is certainly a step in the right direction.
To understand the Stablecoin- which is also referred to as the Basket Equivalent Coin (BEC) – think of it as a currency that can be used to make payments for the transaction fees in the crypto world.
According to the IOHK, transaction systems on traditional cryptocurrencies fall short, primarily because of their dual utility aspect.
In the post, IOHK explains that on one part of the coin, customers are allowed to hold and trade it. On the other side of the spectrum, the same coin provides the fuel needed to process transactions.
In addition, the article recommends the system to offer users a way to get the correct price so that they can process their transactions in a timely fashion.
As the post illustrates, the concept behind introducing Stablefes is to provide a fixed price for transactions by attaching them to a basket of commodities.
Cardano will take on a double-duty in the new system. For one, it will act as a reserve asset of the decentralized reserve. Secondly, it will be tasked with rewarding currency for staking.
Apart from these key functions, ADA will double up as the fall-back currency, should the reserve encounter liquidity problems.
IOHK reported that once they finish researching the finer details of the stable coins, these would be incorporated into ADA so as to offer customers an affordable and predictable pricing plan.