Skip to content

Latest commit

 

History

History
65 lines (48 loc) · 2.81 KB

fee-recommendation.md

File metadata and controls

65 lines (48 loc) · 2.81 KB
Raw

Pepecoin Fee Recommendation

last updated for 1.0.0

The Pepecoin chain has a relatively low block interval, 1 megabyte blockspace and aims to provide a cheap means for people to transact. Therefore, the biggest threat to the Pepecoin chain as a whole is spam. Pepecoin uses a transaction fee and dust disincentive, to combat on-chain spam.

Pepecoin Core implements a number of defaults into the software that reflect the developers' recommendations towards fees and dust limits, that at the moment of release represent the developers best estimate of how these limits should be parametrized. The recommended defaults, as implemented in the Pepecoin Core wallet, are:

  • 0.01 PEPE per kilobyte transaction fee
  • 0.01 PEPE dust limit (discard threshold)
  • 0.001 PEPE replace-by-fee increments

The wallet rejects transactions that have outputs under the dust limit, and discards change to fee if it falls under this limit.

Fees are calculated over the exact size of a transaction. For example, a 192 byte transaction only has to pay 0.01 / 1000 * 192 = 0.00192 PEPE fee.

Miner default inclusion policies

The default values for miners to include a transaction in a block has been set to exactly the recommended fee of 0.01 PEPE/kB. Dust limits are defined by the miner's mempool policy, see below.

Relay and mempool policies

The relay and mempool acceptance policies are lower than the recommendations by default, to allow for a margin to change recommendations in the future (or user preference) without the need for an adopted software release in advance. This greatly simplifies future policy recommendations. As historically, most relay nodes do not change these default settings, these often represent an absolute mininum

Transaction fee

The default minimum transaction fee for relay is set at 0.001 PEPE/kB, exactly one-tenth of the recommended fee. This gives miners and relay operators a 10x downward margin to operate within from a spam management perspective.

Dust limits

The mempool logic implements 2 dust limits, a hard dust limit under which a transactions is considered non-standard and rejected, and a soft dust limit that requires the limit itself to be added to the transaction fee, making the output economically unviable.

  • The hard dust limit is set at 0.001 PEPE - outputs under this value are invalid and rejected.
  • The soft dust limit is set at 0.01 PEPE - sending a transaction with outputs under this value, are required to add 0.01 PEPE for each such output, or else will be considered to have too low fee and be rejected.

Replace-by-fee and mempool limiting increments

The increments used for replace-by-fee and limiting the mempool once it has reached its locally defined maximum size, is by default set at one-tenth of the relay fee, or 0.0001 PEPE.