Quote from the whitepaper:
The transaction fees will be awarded as follows:
Transaction fees will be 1% of the total transaction amount, paid by the merchant. If you transfer 100 Crypti from your account to another, you will charged a 1 Crypti fee to process the transaction. This is the basis of how Crypti will be able to reward users without inflating the total currency in circulation.
That 1% fee will be added to all other fees within that block, and 50% of the Tx fee will always go to the Forger. This is the person on the network with the highest current weight as a factor of Proof-of-Purchase (PoP) + Proof-of-Time (PoT). These will be explained in detail shortly.
The other 50% depends on whether or not the transaction was a purchase activity to a validated merchant, or simply a traditional transfer to another user or non-validated service (i.e. an exchange). If the transaction was a purchase activity (i.e. you bought something from a validated merchant), then this 50% of the transaction fee will be awarded to the merchant account that you purchased the goods from. If no merchant was involved, the entire 100% of this reward will go to the Forger.
So, if I send crypti from my account to another normal (non-business) account, I will have to pay 1% to the forger. This is a disaster. Unacceptable. This would be the most hated coin in the world.
If you want to correct this by charging lower fees for transactions of this type (to non-business accounts), then nobody will want to be a business account - it's better to pay lower fee than get back half of the business fee.
So the whole idea seems to be flawed, no?
Well for starters, you are being very melodramatic. While several have voiced opinions about 1% being too much, I have tried to explain the rationale and we are working on a solution to make this a little bit more bearable in the long term. But in regards to your specific complaints, I will try to answer them from my perspective.
If you are sending money from one account to another, odds are that you are doing some form of transaction, such as selling Crypti, Moving it to an exchange, or buying something from someone online. Moving it from one account to another doesn't seem like something you should need to do very often just for fun and so I don't see where this would be an issue.
To put this 1% fee in perspective, here are some typical fees to transfer money to other people from other services commonly used:
- Walmart 2 Walmart : Starts at $4.50
- Money Gram: Starts at $4.75
- Western Union: Fee for $100 = $5.00
Now obviously these services aren't Crypto Currencies and so I understand the differentiation, but we are trying to build a coin that long term is appealing to forgers. Because no new coins are generated, we wanted to encourage people to run nodes. If the fees are too small, the rewards are as well and people will stop running nodes and in return deteriorate the network.
I often try to remind people who are critical of the 1% fee that you yourself will be forging these fees as payment for running a node. It's highly possible that you could forge 5, 10, or even 20 blocks before you actually move any currency or pay a fee yourself, so in the long run, it creates a profitable market for forgers who choose to support the currency long term. You are going to have to choose what is important to you. An easy system where you simply run a node and forge substantial blocks that are created with a 1% fee, or a currency where you mine all day long to earn 1 fraction of half of 1/3rd of a penny. Our system requires you to pay absolutely $0 up front on equipment (like PoW), we require to own no currency in order to earn (like PoS), we simply require a 1% fee on transactions.
Keep in mind that most exchanges charge transaction fees and almost any web service you use based on any crypto currency also charges fees. Your pools for mining take anywhere from 1%-4% on average on everything you mine, and it just goes in their pockets. Here we are taking all of those fees and funneling them back into the wallets of people who love Crypti. To me, this seems much more equitable than the other way. Not to mention that Bitcoin does have a transaction fee built into the protocol, we simply haven't really seen it in action much yet. It will be much more so once all of the coins are mined.
All of that being said, we are discussing making the transaction fee scale based on network volume in order to decrease the fees as the network grows. This is something we believe keeps payments to forgers at an amount that will convince them to continue to run nodes, but also help make the fee more manageable for users.
Again I will say, all of this is open to adjustment until the IPO and beta phase are complete and we go live. If the numbers just seem crazy off and everyone is of the opinion that it is too high or too low, etc, we will take all of that into consideration.
I think once everyone sees it in action it will be worth it.
These are just my thoughts from my perspective and are not indicative of everyone, so if I said anything crazy, just take it out on me! :-)
