Detailed description of 1000 times LikeCoin transaction fee

In order to provide advance explanation for the upcoming proposals, I specially wrote this article to list the questions I can think of and explain them one by one.

This proposal was not led by one person, but was compiled after a long (actually slow) discussion with Discord community members and information collection from all parties. I just organized the opinions into the most reasonable solution. , organized into more complete information and presented.

Why increase the handling fee?

According to data provided by LikerLand and calculations by Mikasa , the current inflation will increase the circulation (that is, supply) of approximately 10M LIKE every month.

If the transaction fees of all wallet interfaces are increased to 1000 times (ps there is no way to set them separately for different transaction categories), then the entire LikeCoin will have a monthly fee demand of 0.75M LIKE, so the demand/supply will reach approximately 7.5 %.

This proposal is just the beginning. We should continue to adjust the handling fees to keep LikeCoin handling fees reasonable, while also finding ways to make the overall LIKE demand gradually catch up with the supply.

Specific steps?

0. The proposal is approved (note that since wallet handling fees are not controlled by on-chain parameters, this is a text proposal, or signal proposal) and will be proposed in the near future.

1. Update wallet UI and set it to 1000x handling fee

   1. Keplr: LikeCoin is the official chain, so just submit a PR like this and merge: https://github.com/leafwind-web3/keplr-chain-registry/blob/main/cosmos/likecoin-mainnet.json#L37-L39 , min-gas-price will automatically take effect.

   2. LikerLand frontend also changes settings.

   3. The first two alone have covered most of the usage. If possible, I would also like to have settings for other wallets such as Leap wallet and Metamask Snaps, but it is not necessary.

2. Update validator node settings (this part of the operation will be coordinated in Discord)

   • After about two to four weeks, observe whether there is any obvious negative impact on the user experience from the data. If there is, try to eliminate/or give up, otherwise proceed to the next step.

   • Nodes with a majority of voting rights should change the minimum-gas-prices parameter to 1000 times (10000 nanolike)

   • Nodes that retain a small number of voting rights do not change their parameters, so that some users who have not updated to the front end can still use it normally during the transition period.

What impact will it have on users?

• Normal transaction, staking and other handling fees will be between 1~2 LIKE

• The cost of registering ISCN + casting Writing NFT will become approximately 40 LIKE per time

• For reference, the following is the current average single handling fee for relevant transaction types:

  • /likechain.iscn.MsgCreateIscnRecord: 0.0358 LIKE

  • /likechain.likenft.v1.MsgNewClass: 0.0013 LIKE

  • /likechain.likenft.v1.MsgCreateRoyaltyConfig: 0.0013 LIKE

  • /likechain.likenft.v1.MsgMintNFT: 0.0013 LIKE

Will this add too much at once?

1000 times is currently a solution supported by many people in the Discord proposal channel, and I also think it is more reasonable after personal calculation. It is still very cheap at the current currency price: one transaction fee is negligible, and one NFT mint is < 0.1 USD

The decision of whether to pass or not still lies with the community: assuming the proposal fails, we can propose another less radical proposal (for example, 100 times), but the effect may be limited.

Finally, the handling fee will not be fixed forever and can be changed at any time: we can observe it for a month or two first and then observe the data (just like Mikasa and LikerLand obtained the data this time). If the community generally thinks that it is too high, we can make a proposal again. Correction; Similarly, if the LIKE currency price changes significantly, we should also correct the transaction fee.

What about after raising the handling fee?

There are two other branches. The first is to update the fee per byte parameters of the ISCN and LikeNFT modules .

Because this text proposal does not have any mandatory requirements, even if the proposal is passed, it will ultimately still rely on all validator nodes to change their parameters. In the most extreme case, the handling fee may not increase.

In addition, ISCN and Writing NFT are currently the most important products of this chain and are also the source of income for the community pool. After the basic transaction fees are roughly reasonable, we should focus on these two selling points and further fine-tune their fees to be more reasonable.

For example, if the handling fees for these two modules are increased by 10 times, it is estimated that there will be an additional 2M LIKE demand every month.

Why not do it all at once? Because text proposals and parameter proposals cannot be submitted at the same time, and changing two cost parameters at one time is more risky.

Another branch is how to use these fee income . I encourage anyone to join the Discord (to #proposal-discussion) to discuss how transaction fees will be used.

At present, transaction fees are mainly distributed to nodes and validators, and part of them goes into the community pool. Although it is reasonable to pay them to those who maintain the network, some people are already proposing to burn part of the fees, and some people are already discussing how to do this. Use them, for example:

• Mikasa proposed increasing the Community Tax to 10% (the current parameter is 2%).

• Denken is soliciting opinions on how to use the Community pool. Currently, there are 78.55M LIKEs in this pool.

Rather than burning them or raising taxes, I personally prefer to allocate these LIKEs to small projects that the community is willing to contribute to. With good use methods, it is best for the product and long-term token economy. Burning tokens can create a short-term topic, but it is the only solution (this is why we can see many projects without products. The first way to improve the token economy is to burn them.)

Therefore, I also want to take this opportunity to promote it, and invite anyone with ideas to come to Discord to put forward your ideas.