The future of the ‘Stablefees’ mechanism is currently being researched by Cardano.
Stablefees, according to the team, may provide fair and predictable transaction pricing.
The capabilities of dApps in the Cardano ecosystem may be enhanced by using the price oracle and global BEC.
In a blog post published on Thursday, Cardano stated that the team is now studying the future of ‘Stablefees.’ The main idea of Stablefees, according to the researchers, is to establish basic pricing for transactions by pegging to a basket of commodities or currencies.
The goal of Stablefees, according to IOHK, the company behind Cardano, is to enable fair and predictable pricing transactions. Stablefees will also be included in the platform’s ledger rules and system assets strategy, according to the team.
Furthermore, its method includes a native decentralized reserve contract that supervises Basket Equivalent Coin, a stablecoin tethered to the basket (BEC). Cardano further mentioned that Stablefees is a natural progression from Babel fees. The Babel fees are the decentralized reserve’s spot conversion of BECs into ADA.
In addition, Cardano points out that the system’s on-chain oracle is critical. It is here that the price of the basket in ADA is determined. The technology should also provide consumers the option to discover the exact pricing for “timely transaction processing,” according to the article.
According to Cardano,
This approach has one advantage when compared with the first-price auction model: the pricing mechanism is continuously stabilized to a reasonable default value. Users perform price discovery in one direction only to accelerate processing if required.
When a potential transaction issuer does not have access to a native token, however, there is a disadvantage. As a result, transaction issuers must pay ADA fees.
Nonetheless, the fees are anticipated to change continually and remain steady in relation to the basket via the pegging process. As a result, a transaction issuer may properly structure their off-chain asset portfolio to meet their transaction demands.