When Babel Fees available

Hi guys,
As you know I just minting PIGY Token. Which the purpose is to help SPO to give some tips to their delegators. But, the way to distribute is really expensive for me. I think this Babel fees, where the fees can come from the native token will be very helpful. Do you have any updates on this matter?
Because I’m preparing my roadmap.
And Also, if this Babel fees already applicable. Should we still must send 1.4 ADA along with the Native token?


Hey Dan :slight_smile:

Glad you bring this up (the 1.4-6 ADA required +tx fees when sending native assets).

From my understanding, Babel fees will be something SPOs have to choose to accept, for exmple a SPO could agree to take PIGY token to process your transactions, but they will still have to pay the transaction in ADA. And this is just in regards to the TX fee, it has nothing to do with the minimun ADA the system currently makes you included in sending a native asset to someone. So Babel will not help the minimum ADA requirement issue in sending native assets.

I have also brought this up to IOHK that when sending native assets, someone should not have to send 1+ ADA too, they should only pay the *transaction fees in ADA.

I have been told they are aware and working on a solution, maybe a CIP is needed?

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I don’t think the min-ADA can be reduced to zero for tokens. It protects the Cardano ledger from bloat and ensures that nodes can run on relatively modest hardware. (Policy IDs and asset names take up disk space.)

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Just to be clear. It means that no matter Babel fees available or not, we must always send ADA along with the native token right?
Who will decide this Min-ADA value?
And if one day, I manage to create independent wallet. Can I remove this Min-ADA value? or always be there?

We’ll have to see how Babel fees are designed and implemented: for instance, I imagine that they could be formulated to refund the min-ADA. However, whatever on-chain transactions are involved with Babel fees will have to obey min-ADA.

Any transactions that violate min-ADA will be rejected by the block-producing nodes, even if an independent wallet were to create and submit such a transaction. The protocol parameters determine the min-ADA rules, so they could be changed in the future by the Cardano Foundation or (later) by community consensus/vote.

FYI, here is an online calculator for computing min-ADA.

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As usually thanks a lot for explaining this. In conclusion, There will always be ADA that send along with the native token. But somehow we can reduce it (although not much) except if in the future CF/vote says they will reduce it.