XRP Ledger Amendment Set to Introduce New Fee Structure for XRP: Details

The XRP Ledger (XRPL) team continues to embark on strategic developments to improve the leading blockchain network. Among the latest improvements on the sleeves of the XRPL team is the amendment dubbed “XRPFees”.

The goal of this in-development amendment is to introduce a new fee structure on the XRP crypto network to simplify transaction cost calculation. Particularly, it aims to completely alter the fee structure on the XRPL, changing from the use of “fee units”, which is unnecessarily complex, to drops of XRP. 

Notably, a drop of XRP is simply the smallest unit of an XRP token and there are 1 million drops in one XRP token. It is commonly believed that calculating transaction costs using drops of XRP is more convenient and easy compared to calculating transaction costs using fee units — the existing approach. 

“Simplifies transaction cost calculations to use XRP directly rather than calculating indirectly in “fee units” and translating the results to XRP,” the XRPL development team wrote. 

This gave rise to the XRPFees amendment which is still in development and will update all instances of “fee units” in the protocol and ledger data to be drops of XRP instead, including updates to the Fee Voting protocol, the FeeSettings ledger entry type and SetFee transaction type. 

It is worth noting that a similar development was proposed in November 2021. While it addressed the issue on a portion of the protocol, some areas still use “fee units.”  The in-development XRPFees amendment is therefore set out to update all instances of fee units on the XRPL to use drops of XRP instead. 

Recall that a certain XRP user noted that the transaction fee charged on the XRPL network is too cheap, suggesting that it should be modified in a manner that would trigger a boost in the price of XRP. But Ripple CTO, David Schwart, didn’t subscribe to the idea of tampering with the status of the XRP Ledger or manipulating transaction fees on the network to boost XRP value.

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