XRPL Latest Amendment Will Review XRP Fee Structure

XRPL Latest Amendment Will Review XRP Fee Structure

XRP Ledger (XRPL) amendment, which is still under development, is set to alter the XRP fee structure so that fees are calculated in XRP directly. The amendment attempts to force the network to assess its fee structure thoroughly. By converting fees from “fee units” to drops of XRP, it aims to change how fees are calculated.

The “XRPFees” amendment seeks to simplify the process of calculating the fees on the XRPL by using drops of XRP directly. It should be noted that a similar amendment was put out in November 2021, and while it solved the problem, certain areas were left unaffected. To maintain backward compatibility, these areas continue to utilize “fee units.” 

Related Reading: XRPL Network Advancements Impressed Ripple CTO

The Amendment Will Use XRP Drops

A drop of XRP is the smallest size of an XRP coin, and one XRP has one million droplets. The network uses this drop in some regions to determine fees; market participants think it is more practical and straightforward. 

The most recent amendment aims to replace all locations on the network where “fee units” are still in use, replacing the structure with XRP drops. The following are the areas the amendment seeks to update:

  • The Fee Voting Protocol: lets validators vote on adjustments to the number of fees the network should levy for a transaction. The voting process currently uses “fee units.” The adjustment wants to make it XRP drops. 
  • FeeSettings ledger entry type: This will be updated. The adjustment will replace BaseFee, ReferenceFeeUnits, ReserveBase, and ReserveIncrement with BaseFeeDrops, ReserveBaseDrops, and ReserveIncrementDrops. 
  • SetFee transaction type: The amendment aims to replace the ReferenceFeeUnits, BaseFee, ReserveBase, and ReserveIncrement sections with BaseFeeDrops, ReserveIncrementDrops, and ReserveFeeDrops, respectively. 

Transaction Fees for XRPL Will Not Change 

As of publication, data from the official XRP Ledger website indicates that the amendment has yet to be approved. Understanding that this suggested evaluation may not necessarily impact the costs associated with transactions on the XRPL is vital. Instead, it aims to introduce a new free framework that will make figuring out the prices easier. 

As was mentioned two months ago, a member of the XRP community said the fees on XRPL should be raised because they are “too cheap.” He conducted a poll on this idea, but most respondents rejected it. 

The CTO of Ripple, David Schwartz, made it clear that while he supports the fee increase, he opposes utilizing it to drive up the price of XRP. Instead, he underlined that because transaction fees are currently subsidized, they should be changed to represent the actual price they place on the network. 

Read Also: XRP Predicted to Surge to $27; Here’s How

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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