I have a question regarding Monero fees.
Currently a transaction gets you to pay around 0.00003 - 0.00005 XMR of transaction fee.
This is a very small fee, and given that XMR is priced at ~150€ it results in less than 1 cent of fee (0.6 cents approx).
I know of Monero’s dynamic block size and that it will contribute to keeping fees small in the future given increased usage.
However, imagine a scenario where Monero’s price skyrockets. Let’s say current BTC price of 66k€.
A similar transaction fee of 0.00004 XMR would result in 2.64€ of transaction fee. This would make XMR unusable (or at least not interesting) for transactions of 10€ or less, given that the transaction fee would be 25% or more of the intended spend value.
I know that it is very unlikely that XMR reaches those values, but in that hypothetical scenario, what would happen with the fees? Would the absolute fee value in XMR go down? Is there a system already in place for this? Would the devs manually lower the fees?
As far as I can read, fees are determined by block size. The smaller the block, the larger the fee. If Monero went mainstream and usage increases, the blocks would be larger and the fees smaller.
Thank you for making me research this. I learned something new today 🙂
That is a very cool mechanism. Thanks for the info!