Post
Topic
Board Development & Technical Discussion
Re: the oxidation fee..
by
mixoftix
on 26/04/2024, 14:54:31 UTC
Thank you Stompix for reply,

It's oxidation TAX!

Taxation is not a bad thing if spend in its true ways. spending taxes out of the taxed system is harmful but investing taxes on infrastructure of the taxed system always improves and creates value.

but lets look at the oxidation concept as a hidden cost, not taxation. imagine you have 6 x 50 USD banknote in your pocket. you are happy that have this money in cash and can spend it anywhere freely (lightening channels), but nothing more. the only cost of it for you is about finding the nearest ATM and pay the cost as time. just take in mind that central banks also pay for printing those banknotes at the beginning (genesis block), because each banknote could spend in more than 1000 transactions, so the cost of providing those cash will break into plenty of transactions - so imposes small rates of fees on society and economy.

but when you have 3000 USD as banknote with you, you will begin to worry about its safety, so instead of walking in the street to home, you may hail a cab for more safety. therefore as you could see, your 3000 USD in cash in fact has lower value - after pay the cab driver, something like 3000 minus 55 USD (the cab fee, not cab tax).

now imagine you have 30'000 USD in cash and you are in real trouble, because the problem is how to keep it safe in home! so you need to pay for a vault. and now your 30'000 worth after reducing the cost of buying and installing a vault in your home! so as you could see none of them are taxes to your money. they are all about preserving your money.


Why would this happen and how?

the oxidation fee makes everybody to move their coins into new blocks, so after a while older blocks will be full of data that may not get accessed for a verification process for new transactions. so in new generation of nodes that only save non-oxidized transactions, you always find free spaces for bigger amount of transactions per new block.