DIP-3: Introduce EIP-1559-like Mechanism to Reform the Network Fee Market

• Category: Economic
• Original article: https://dips.darwinia.network/DIPs/dip-3.html
• Focused on Darwinia improvement proposals discussion: DIP GitHub

Abstract

This DIP suggests implementing EIP-1559-like mechanism within the Darwinia Network to transform its fee structure.

Under this proposal, all transaction fees would be burned, while tips would be awarded directly to block authors. This aligns with our future inflation strategy, motivates collators, and paves the way for practical applications of RING. The result is a more predictable, sustainable, and user-centric ecosystem.

Before Darwinia adopts the new inflation model, this DIP will make minor adjustments to the inflation mechanism to prevent the reissuance of burned assets.

Rationale

Reasons

1. By adopting EIP-1559, which replaces the gas auction system with a base fee plus a priority fee, users will benefit from more predictable transaction costs while also reducing network congestion during peak times. This improvement serves both individual users and the network overall.

Future Objectives

1. To align with our upcoming inflation model, the burning mechanism of EIP-1559 for part of the transaction fees is consistent with Darwinia's strategy to revamp its inflation system. This approach aims to maintain long-term token value stability and promote sustainable development of the network.
2. To better balance responsibilities and rewards within the relay chain-parachain structure, where collators play a more indirect role in security, it’s logical to adjust block production incentives to reflect their updated contribution to consensus maintenance and network protection.
3. To enhance utility for RING, introducing tangible use cases is essential. Doing so encourages wider token engagement within network activities and increases their practical value.

References

• https://eips.ethereum.org/EIPS/eip-1559
• https://darwinia.network/Genepaper_v3.pdf

Specification

Transaction Fee Adjustment

Integrate this within DealWithFees and pass the struct to pallet-transaction to enable the updated transaction fee model.

Inflation Adjustment (Darwinia Only)

First, create the issuance map for Darwinia as outlined in the Darwinia Genepaper.

Calculate the session issuance amount based on the previously calculated map.

Copyright

Copyright and related rights waived via CC0.