RIP-000-007: Adjust the ETH burn fee and the BSC mint and burn fees to the new default 0.15% fee

[Arviee]

@Liberty

Will support this proposal. I personally agree with @farmerjohn that fees could be higher still. I think they will end up higher, when you look at the utility provided by RenVM, the level of rent-seeking people are already accustomed to in Legacy Finance and the obvious point the adaptive-yet insignificant impact of mint/burn fees next to the ludicrous returns people are making in DeFi.

You’ve got dApps like bitcoin tumblers out there charging 2%-5% just to send a (private) transaction. Fifteen basis points for true cross-chain portability? Pff, let’s try fifty.

I will also point out, from a business perspective, that raising the price on your product is the absolute fastest way to boost the value of equity in your company (that means REN tokens!). Although you only want to do this in periods of sustained and increasing demand. I don’t think we are quite there yet.

So let’s pass this, get past the blitz, get the protocol decentralized and the community fund rocking.

Then we use the CF to fund a big press campaign and raise prices into that.

This goes against the idea of RenVM being in the backend. Our fees must be the highest they can be, while still being small enough, so that RenVM integrators can adopt our solution and still charge their fee on top, so that the end number wouldn’t scare users away and wouldn’t be much higher than the competition that’s bound to emerge sooner or later.

[Liberty]

Valid point.

Again from a business perspective, what would be done typically is to have governance negotiate/set the rate per integration or by volume. You would develop some end user tools where higher fees are charged and then have an “infrastructure” or “wholesale” rate commensurate with expected volume.

But it is far simpler to just set these globally and not have to rely on active governance.

[MaxRoszko]

The results are in

The core team will announce beforehand when the fee changes will be implemented.

[preston]

Coming soon to a new epoch near us? 6 days to go!

[MaxRoszko]

Fees can be changed regardless of whenever epochs are occurring, but coincidentally RenVM fees are being internalized at the moment and might be ready sometime next week, at which point the fee changes make sense to be implemented!

[preston]

Great News Max!

Cheers to the entire team on this update, it creates value for all stakeholders and paves a path for future growth

[WesleyDunow]

I agree with the change.

[MaxRoszko]

It looks like the fees have been adjusted now, and the command center tracks this so can always be used as a reference:

An interesting side-effect of this is that you can no longer directly see the fees in a given mint or burn transaction. Take this random burn for instance, it no longer displays the burn fee going to a darknode rewards contract, that is all handled through logic internal in RenVM:

[WesleyDunow]

I’m curious Max what’s causing the new side-effect your talking about? Is it the changes made in claiming fees that has cause the side effect?

[akram01127]

It shows How RenVM mint/burn fees are not collected in the RenVM ETH smart contract like before.
Collected RenVM fees are inside the RenVM native BTC, BCH,…etc address. that is Why it is not required to use ETH blockchain to collect, calculate, distribute fees to DNOs. ETH is only for DN registration at the moment because the REN token is an ERC20.

RenVM is now able to collect, calculate and distribute fees to DNOs without using ETH blockchain which means that RenVM can do complicated transactions like ETH but on multiple chains which is something crazy and highly required by crypto developers.