Using Native Tokens to Pay Fees

From this video:

Why can’t we pay fees with native tokens? I thought this was the differentiating feature away from Ethereum, using the Cardano Network to transact value even if not using Ada.

Did I miss something from this summer’s presentations?


Not in this stage, but in the future perhaps you will be able and there are reasons for that why you cannot now.

One of the reasons: Imagine you create 1b SH*TC as native token for only 1 ADA,( you can) and create an alg constantly generating transactions paid by that coin instead of ADA, for example for 0.1 SHTC, so, you could DDoS the whole Cardano Network for currently ~16 cents by sending 10 billion txs onto it. Hope makes sense.


Thanks. I can understand from your example the problem if implemented that way.

I would hope that there would be some controls against spam transactions in this way such as proof of burn or blacklisting or something.

I’d like to be able to trade Litecoin on Cardano without having Ada like the potential buzz is talking about. I’m sad more people aren’t mentioning this backtracking.

The community will be able to vote which coins can pay tx fees in their own token…and (i believe) stakepools will also be able to choose if they support these tokins too (incase pot coin is illegal in your jurisdiction). The pool deligators will also recieve these tx tokens, which will create a interesting marketplace with stakepools.

In the early days though its better to be just ADA. Imagine if you open your wallet to find you have been paid 500 “other” coins last epoch. That would be great if it was "maker, aave or uni. But not so much if it was verge bitcoin diamond or tit coin.

I imagine someone could create a automatic uniswap like application dex that makes this seem seemless from the token senders point of view and pays the fees in ADA. (Any devs here wanna tackle that one?) :smiley:

WOZX This token must be on the Cardano blockchain

Shouldn’t the minimum transaction fee still be valued in ADA as is in the epoch params?

1 Like

Yeah that is and should be the case, if you meant pay it in the native token but at the value at the min ADA price of the tx. But it is computationally expensive to convert or calculate the native tokens value back to the ADA as the token policy needs to be examined and validated on every transaction. So, that is why I wrote, not at the moment, but perhaps in the future it will be a possibility. I did not wanted to go too deep in the details.