Yes, I also think Namespace/Mosaic fees should be lowered as an incentive for this new feature to gain some traction (now that the price spike is over : )
I am working on it…
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I was thinking of developing on NEM but it appears the fee structure is problematic for sending and receiving mosaics. On Ethereum the cost is 0.0004 ETH for XEM it is 1 XEM. The cost goes from $0.04c to $0.20c, that’s a bit problematic to do frequent exchanges. As the price rises, the slow fee change makes the transaction costs a liability. Also, as mentioned a namespace for 0.13btc is a few hundred dollars. To encourage adoption these fees need to be lower. It’s not practical to have high fees in a low transaction volume space when trying to build an application and the blockchain itself is trying to get exposure.
Perhaps I might be mistaken, if so please correct me.
Fees will decrease, I already implemented it in NIS but it needs to be implemented in the clients too, so please have patience.
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OK. Good to know. Are you able to say, how the fee structure works or at least how it will stay stable relative to price increase? I saw the price increase and that is what made me notice the technology. I was in the research phase and noticed the fee structure specifically because i’m looking for high volume low cost transactions fast transaction. Also creating a mosaic costs 5000 xem, which is roughly $1250 vs $5-10 on ethereum.
If the new fee structure is reasonable, my buddy and I can use nem to power our app. Otherwise we have to go with ethereum because the fees are more predictable even with their price rise.
Please don’t take this harshly, I really like what i see with NEM, but its difficult to select currently because of the fee structure. If you can share your plan on how its implemented, that would be helpful.
General outline:
- transfer fees will go down by a factor 20 (min 0.05 xem, max 1.25 xem for xem transfers without messages)
- Creating / changing config of a multisig account will cost 0.5 xem
- namespace / subnamespace / mosaic creation sink fees will be 100 / 10 / 10 xem
- all other transactions will cost 0.15 xem
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Awesome, thanks BR! When will these new fees come into effect?
Great, please could you also review the minimum requirement for harvesting.
I want to run a full node and local harvest but at this moment only have 2000+ xem.
Thanks
Thank you! One other question relating to this, is it a dynamic fee or fixed?
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Fixed in the sense that it does not adjust automatically if the xem price changes.
I don’t think that is planned. Even with 10k the chance to harvest a block is quite low due to the huge number of supernodes, doesn’t make sense to lower to 2k.
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Wow, thank you very much, these are very affordable now, i might use them before i expected 
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Please consider things like namespaces to use dynamic adjustments since they are recurring. It is not as important now, but if nem continues to grow, having a critical piece like namespace be subject to variable pricing is going to be a pain. If namespaces are $20 now and $100 next year and up or down again later this becomes a problem for smaller devs, not so much for bigger enterprises.
I’ll make sure to get my name spaces once released. The issue being, as devs we will have to buy XEM and offer up services for ‘free’ during promotion. All the while in the backend we’re paying for the tx costs for the user until we can move over to a working paid model or pay-to-use. Since we don’t have harvesting or supernodes, the funds to start developing on xem will be consumed, while this might’ve been ok around $0.02c at $0.20+ and anticipating growth the more users there are will certainly increase the cost of all services.
I am getting ahead of myself since i don’t know what the transaction volume will be but i’m planning on building a service where users constantly send and receive mosaics w. messages. If there is a better way to do this w.o the fees. I’m all ears. I just don’t want each transaction to cost $0.25c to $2.50 each way. One of the biggest, adjustments/issues for mainstream adoption will be the adoption of variable micro-fees.
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How do you want to do that?
The network itself does not know anything about the outside world. So the xem / $ pair is unknown to the nodes in the network.
Is there a way to peg against the $ value? I don’t expect anything quickly done but I’m just voicing a issue in anticipation for the next surge. I don’t know how to get around that. I don’t have the answer to it but it isn’t unique.
Not sure if i can post this here, but here is a discussion with the same issue with ethereum.
Excellent!
I asked a similar question yesterday on NEM channel in telegram. Paul responded saying “Dynamic fees are impossible if you want to keep everything decoupled”.
To keep NEM decoupled means it is not interacting with third party resources like ethereum does. NEM specifically doesn’t do that to keep outside effects to minimum. I was thinking this was a current bug -not being able to peg to usd- but when you define it like that this is a feature of NEM. If you want to interact with outside world you can do that in your application, NEM will supply immutability and transactions as far as I can tell.
The price of microtransactions will always have to be updated but I guess if the price spikes occur this needs to be faster than today.
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The irony of that though. If the price goes up this has to be manually updated and propagated from NIS to Clients; this is one of the most important variables that determines the cost($) of every transaction. I agree keeping outside influence is nice, but xem is already pegged to ($) in outside markets. If we all got XEM for nearly free, this wouldn’t be an issue but it is a practical issue because we have to buy xem to use it. So its a huge factor. I’m new and i hope i don’t come off too pushy, but this is going to be a blocker for a lot of people. Even though the XEM system has no knowledge of XEM?USD price. We all onboard using USD/XEM.
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An idea to help ease the concern over fees would be to have some type of fixed fee change system. For example:
If the price is $.25 USD to 1 XEM for 2-month average the fees are X
If the price is $.50 USD to 1 XEM for 2-month average the fees are X
If the price is $2 USD to 1 XEM for 2-month average the fees are X
This would give people/companies some ability to predict a change in the fee structure, additionally, you would reduce the requests for changes by people and reduce the number of times you would need to make the changes.
How will the blockchain (NEM platform) know about the price?!
How can this real price information be supplied to the blockchain?