Zcash (ZEC), a cryptocurrency with privacy fundamentals, recorded a sharp increase in price after presenting a new fee proposal.
In the last 7 days, ZEC’s price went from $331 to $410, an increase of 23%.as shown in the following figure:
Yesterday, December 8th, Shielded Labs published a proposal proposing a new dynamic pricing mechanism for the Zcash network.
The effort is to replace the current system based on fixed fees on stocks with a dynamic model that can adjust to the actual congestion of the Zcash network without compromising privacy.
The proposal proposes rounding fees to a power of 10.For example, 32,000 to 10,000 zats (zcash minimum unit) or 78,000 to 100,000— instead of using the exact median.
In this way, rates reduce the amount of information that can be revealed about users, simplify the experience (less digits, more clarity), and result in less frequent rate changes. In practice, this reduces the entropy of the fees and increases privacy without complicating the system.
When the network becomes congested and the lookback window leaves no room for synthetic transactions, this proposal enables a “fast lane.” Priority mode allows users to pay 10x more to ensure faster verification.
Miners prioritize transactions with higher fees, especially those in the “fast lane.” Because that trade is more profitable. This strengthens the fee market and thwarts spam attacks.
In that sense, this logic of maximizing miners’ profits is consistent with the current situation. As reported by CriptoNoticias, ZEC’s strong performance has made the Equihash-based team attractive again. In November, it topped the ranking of the most profitable hardware on the market.
