What are the cultural norms that MobileCoin hopes to achieve over the long haul for transaction fees?
If a cryptocurrency network is able to process 10,000 transactions per second at 1¢ USD each, then it has the capability to process merchant transactions for physical goods. That would put it on par with the Visa payment card network today.
If a cryptocurrency network can do an order of magnitude better on both speed and cost, then the use cases expand. If the network can handle 100,000 transactions per second for ⅒¢ USD ($0.001) then use cases like streaming payments become possible. A user could pay small amounts of money continuously until they decide to stop a service. The level of ⅒¢ USD also enables micro transactions for digital goods in video games.
The fee on the testnet will start out as a static number and will have a fee controller that tunes it over time to manage network congestion. Basically, if the network is uncongested we want the fees to be as low as possible. If the network is congested, we want to clear the maximum number of transactions per second until congestion subsides.
Eventually all fees on the network will be determined algorithmically by demand. For now it’s just a number we picked.
So I’m curious about what the team would like to achieve for average daily transaction fee. Would the higher surge pricing happen all the time, like daily during peak demand, or only rarely, like once per month during a holiday celebration?
By thinking about these levels of transaction processing capability, we can ensure the network will be accessible to a wide audience.