Name: Adjust the ETH burn fee and the BSC mint and burn fees to the new default 0.15% fee
Status: Final - Accepted
Scope: Adjust the burning fee on ETH and the minting and burning fees on BSC to 0.15%, putting it in line with the other host chains, with the exception of the 0.25% ETH mint fee
This RIP proposes to adjust the burning fee on ETH to 0.15%, and the minting and burning fees on BSC to 0.15%. This would set all host-chains at the same fee structure, with the exception of the ETH mint fee staying at 0.25%.
The fee adjustment could take place after the Multichain Blitz period, with proper notice of the upcoming fee change for our users on the ETH and BSC side, giving time to anyone wishing to bridge their BTC to one of the other host chains to only have to pay the 0.1% burn fee.
The rationale for this is the same as in the previous RIP-006 proposal: that we’ve observed that the primary reason people bridge assets like BTC to host-chains is because of earning yield. And those type of users would not be particularly sensitive to the fee being either 0.10% or 0.15%, since they are likely getting 20-100% or more APYs.
- Adjust the ETH burn fee to 0.15% (whilst keeping the 0.25% mint fee)
- Adjust the BSC mint and burn fees to 0.15%
- Initiate this change roughly a week or two after most of the Multichain Blitz chains are launched and available to everyone
When direct host-chain to host-chain bridges are up, it will be likely that users will be moving assets such as renBTC across host-chains for trading and arbitrage use-cases. It will then be prudent to revisit the fees and work out how they should work when someone for example bridges renBTC on Ethereum to renBTC on Solana, so that it does not become prohibitively expensive paying both a burn and mint fee, given the current levels we have and are proposing to increase.
- Vote on the proposal
- If accepted, initiate the change after the Multichain Blitz is over