# Reddit Post "High Transaction Fee?"

**URL:** <https://forum.cardano.org/t/reddit-post-high-transaction-fee/15320>\
**Category:** General Discussions\
**Created:** [24 August 2018 05:56 UTC](https://forum.cardano.org/t/reddit-post-high-transaction-fee/15320 "2018-08-24T05:56:40Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![Upwardbound](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/upwardbound/32/6155_2.png) [@Upwardbound](https://forum.cardano.org/u/Upwardbound)\
**Post date:** [24 August 2018 05:56 UTC](https://forum.cardano.org/t/reddit-post-high-transaction-fee/15320/1 "2018-08-24T05:56:40Z")

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Found this on reddit, is this accurate?

> **[r/cardano - Where will Cardano be in 2 years?](https://www.reddit.com/r/cardano/comments/99oc9e/where_will_cardano_be_in_2_years/)**
>
> 30 votes and 79 comments so far on Reddit

  
Read below:  
I am worried about their transaction fees:

> **[Transaction Fees](https://cardanodocs.com/cardano/transaction-fees/)**
>
> SL Documentation

## MINIMAL TRANSACTION FEES

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

```auto
a + b × size 

```

where:

- 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.

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**Author:** ![vantuz-subhuman](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/vantuz-subhuman/32/3976_2.png) [@vantuz-subhuman](https://forum.cardano.org/u/vantuz-subhuman)\
**Post date:** [24 August 2018 06:40 UTC](https://forum.cardano.org/t/reddit-post-high-transaction-fee/15320/2 "2018-08-24T06:40:00Z")

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> [@](#):
>
> 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.​

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.

> [@](#):
>
> With these transaction costs, ADA will be worthless very quickly.

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

> [@](#):
>
> I am hoping they reduce the transaction cost to 1/100,000th of its current price.

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 🙂 Just wanted to address points directly =)

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<div class="post-metadata">

**Author:** ![Upwardbound](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/upwardbound/32/6155_2.png) [@Upwardbound](https://forum.cardano.org/u/Upwardbound)\
**Post date:** [24 August 2018 06:53 UTC](https://forum.cardano.org/t/reddit-post-high-transaction-fee/15320/3 "2018-08-24T06:53:25Z")

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

Cheers

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**Author:** ![canopus](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/canopus/32/1954_2.png) [@canopus](https://forum.cardano.org/u/canopus)\
**Post date:** [25 August 2018 16:29 UTC](https://forum.cardano.org/t/reddit-post-high-transaction-fee/15320/4 "2018-08-25T16:29:01Z")

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Just adding to the excellent response from @vantuz-subhuman

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

> **[Research Library](https://iohk.io/research/library/#XAI49QC9)**
>
> Cascading disruption