Skip to content

Update 20230323-transaction-fee.md #335

New issue

Have a question about this project? Sign up for a free GitHub account to open an issue and contact its maintainers and the community.

Sign up for GitHub

By clicking “Sign up for GitHub”, you agree to our terms of service and privacy statement. We’ll occasionally send you account related emails.

Already on GitHub? Sign in to your account

Open
wants to merge 1 commit into
base: main
Choose a base branch
from
Open

Update 20230323-transaction-fee.md #335

Changes from all commits
Commits
Show all changes
1 commit
Select commit
File filter

Filter by extension

Filter by extension
Conversations
Failed to load comments.
Loading
Jump to
Jump to file
Failed to load files.
Loading
Diff view
Diff view
5 changes: 5 additions & 0 deletions governance/20230323-transaction-fee.md
View file
Open in desktop
Original file line number Diff line number Diff line change
Expand Up @@ -7,6 +7,11 @@
| **Sponsor** | Kshitij Chaudhary ([email protected]) |
| **Updated** | 2023-03-23 |

## **Update 7/24/25 **
_This FLIP will no longer be pursued and is being formally withdrawn.
In its place, a new FLIP focused on Surge Pricing is being introduced to establish a more dynamic and sustainable fee mechanism on Flow. This upcoming FLIP will better reflect current network conditions and long-term tokenomics goals, while keeping base fees unchanged in the near term.
We look forward to engaging the community on the Surge Pricing proposal soon!_

## **Introduction**

In October 2021, with [FLIP-660](https://github.com/onflow/flow/blob/c05d847adf2f6fb509e42c17020484d7dd3e89bd/flips/20211007-transaction-fees.md) it was determined that the transaction fees on Flow should be proportional to the cost of effort to the network imposed by deployment of resources such as CPU and bandwidth. Fees were broken down into [three components](https://developers.flow.com/learn/concepts/variable-transaction-fees) - ‘*Inclusion Fee*’ that accounts for the resources required to process a transaction due to the transaction’s core properties (byte size, number of signatures); ‘Execution Fee’ that accounts for the operational cost of running the transaction script, processing the results, sending results for verification, generating verification receipt, etc; and a *Surge* factor as a multiplicative factor to dynamically account for network pressure and market conditions.
Expand Down