Name: Determining initial mint/burn fee for new chains
For the sake of conversation, I propose that we discuss and align on how we determine initial mint/burn fees. Currently we set mint/burn to 0.1% regardless of the chain we are bridging. I would like to open up the discussion and determine whether or not 0.1% is fitting for new chain releases. Given there will likely be significant upfront volume if there are appropriate initial use cases, 0.1% may or may not be the right starting fee.
This RFC proposes that we should consider if an universal 0.1% initial mint/burn fee is appropriate for new chains.
Some potential questions to consider:
Is a universal fee appropriate?
How did we arrive at 0.1% mint/burn fee?
How do we determine an appropriate fee for new chains?
What are the costs and benefits of a case-by-case initial fee?
What are the opportunity costs of having a universal initial fee?
A framework to determine appropriate initial fees for new chains in the future.
As we have seen with RFC-000-007, amending fees can be a contentious issue and takes time. By discussing this now we can position ourselves to do the analysis upfront and make better decisions as we add chains.
Thanks to @DeFiFrog for help in preparing this proposal.
- Let’s discuss further
- Let’s increase from 0.1% mint and 0.1% burn
- Let’s decrease from 0.1% mint and 0.1% burn
- The Ren Team’s arbitrarily set initial fees are fine (0.1% & 0.1%)
Edit: Added poll.