Reddit Post "High Transaction Fee?"

Found this on reddit, is this accurate?

Read below:
I am worried about their transaction fees:


The minimal fees for a transaction are calculated according to the formula:

a + b × size 


  • a is a special constant, at the moment it is 0.155381 ADA;
  • b is a special constant, at the moment it is 0.000043946 ADA/byte;
  • size is the size of the transaction in bytes.

That cost, 0.155 ADA is ridiculous. Say someone wants to make an application that’s doing 10,000 TPS… that equates to $140/second without doing any operations (this is $0.09 USD = 1 ADA). Now if ADA was $2.50, it would be $3,800/second.

With these transaction costs, ADA will be worthless very quickly. I am hoping they reduce the transaction cost to 1/100,000th of its current price.

Applications are not supposed to do 10K TPS on SL chain. It’s not a real usecase, and no one will ever do this. Problem solved.

SL = settlement layer. It only should be used to settle money transfers. And if you settle money transfers - your pay the fee, whatever the point of your app.

On CL transaction policy will be completely different and gas-based. Be sure that doing 10K TPS will still cost you a little fortune, so you have to make sure those TPS really worth it. Because applications are not supposed to do 10K TPS on-chain transactions. It’s not a real engineering usecase and the whole idea is generated by communities as the most naive scaling solution ever. Cardano researches and plans to develop proper scaling solutions that does not require your app to DDOS nodes with transactions. If your app does that - you pay the fee.

  1. It won’t
  2. Transaction policy may be adjusted at any time as a simple protocol parameter

They won’t. There’s some math behind those numbers, they are not random.

P.S. @Upwardbound, I know it’s not your words in that post, sorry if it looks, like harsh response with quotes is directed to you :slight_smile: Just wanted to address points directly =)


The answer was very much appreciated. Not taken that way at all.


1 Like

Just adding to the excellent response from @vantuz-subhuman

If your app needs 10K TPS you’d use an implementation of Sprites