Zcash proposes a dynamic fee mechanism to address network congestion and rising transaction costs

ChainCatcher news, according to CoinDesk, the Zcash core development team Shielded Labs has released a detailed proposal for a dynamic fee market, aiming to address network congestion and rising transaction costs.

The proposal suggests adopting a dynamic pricing mechanism based on the median fee of the previous 50 blocks and opening a priority channel during periods of high demand. Currently, Zcash uses a static fee model, initially set at 10,000 zatoshi and later reduced to 1,000 zatoshi. Although the previous ZIP-317 proposal introduced a behavior-based charging method, it still maintained a predictable low-fee structure. With the recovery of ZEC price, an increase in retail users, and growing institutional interest, developers believe the current fee model is no longer sustainable. The new proposal will be implemented in phases, starting with off-chain monitoring, then as a wallet strategy, and finally as a consensus change after approval. This mechanism avoids the complexity of EIP-1559 while maintaining Zcash's privacy features.