Reducing Transaction Fees via Catalyst

Is anybody else even slightly concerned about the rising transaction fees on Cardano? They have risen from less than a cent, to over 40 cents per transaction just recently and this is all due to the fact that the transaction fees are fixed at around 0.16-0.18 ADA per transaction. So as the price of ADA has increased, so have the fees.

I was surprised to learn that there are currently no measures in place to change this set-up, so if ADA rose to $10, 1 transaction would cost $1.60 - $1.80.

Now this may not be as outrageous as Ethereum’s fees have been, but I feel that it would be a significant turn-off for a lot of people, especially people new to the crypto space, who would likely find other blockchains, with negligible fees, more attractive to use.

So, from what I gather, the only way to change the way fees work on Cardano is to submit a proposal through Project Catalyst, which is exactly what I intend to do. I think it is ridiculous to have fees tied to the price of ADA which is currently and for the foreseeable future going to be a very volatile asset.

I therefore intend to propose that the fee formula be changed to one that ties them to something that is relatively stable, like a stablecoin for example. This way, we would not only be able to set fees to be low, but also stable for a long period of time.

I would very much like to hear people’s comments on this idea before I begin to formally submit the proposal, especially from the technical point of view, in terms of if this idea is able to be implemented easily, and if fixing fees in this way keeps rewards for stake pools at a high enough level etc.

I just feel like something needs to be done about this issue, as it could be very detrimental to Cardano’s growth, and I am a big fan of the philosophy behind Cardano and would love to see it achieve its admirable goals.

Thanks for reading and I look forward to hearing responses.


Hi, interesting ideas. IOHK’s Cardano team is also addressing this issue, by researching ways to implement what they refer to as “stablefees.” Please have a look at Stablefees and the Decentralized Reserve System.

Our team is currently researching the granular details of the Stablefees mechanism. Once this research is complete, Stablefees can be integrated into Cardano to offer fair and predictable transaction pricing. Moreover, the price oracle and the global BEC (and regional variants, if included) will undoubtedly find uses beyond paying transaction fees, expanding the capabilities of decentralized applications in the Cardano ecosystem.