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Will Cardano Have Lower Fees? Charles Hoskinson Explains

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Tue, 08/31/2021 - 05:00
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Alex Dovbnya
Cardano stakeholders will be able to vote on lowering transaction fees during the Voltaire era
Will Cardano Have Lower Fees? Charles Hoskinson Explains
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During a recent ask-me-anything session, IOG CEO Charles Hoskinson spoke about lowering Cardano’s fees, stating that such a change is up to the community to implement:

The community will be in charge of that.  

In response to a user who claimed that transactions might get too expensive in the future due to rapid price appreciation, Hoskinson said that ADA holders will have to make a reasonable decision regarding improving the fee structure.

During the Voltaire era, the final piece of Cardano’s roadmap, the proof-of-stake blockchain is expected to become a self-sustaining system. The governance process will be conducted solely by ADA users through improvement proposals.

Hoskinson adds that fees are not the best mechanism for controlling congestion, adding that scaling solutions of the likes of Hydra will be able to mitigate it.

While notoriously high fees continue to plague Ethereum, Cardano has an ample opportunity to chip away at the rival’s market share.      

In the past, Hoskinson claimed that the exorbitant cost of transactions on the Ethereum chain wasn’t feasible for developers:

You can take your DeFi and you can run it on my system for 1/100 to 1/1000 of the cost.

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The most unique thing about Cardano

Hoskinson also spoke about the “most unique” thing about Cardano that makes it stand out among other popular blockchains.

The crypto tycoon believes that this is the ability to have hard fork combinator events that allow the blockchain to seamlessly implement new features.

As reported by U.Today, the Alonzo HFC, which will activate smart contracts on the Cardano mainnet, is going to take place on Sept. 12.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.