Mining Tokens and Waves Commissions

    If commissions can be paid by other tokens, is there any point in keeping Waves?

    Yes, because:
    1) It helps to increase the number of users;
    2) There is a demand from the operators of nodes who want to deal with their income as they please, regardless of the type of currency.

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    Waves recently announced a new feature: the ability to pay transaction fees for any tokens that are used in the Waves network , not only Waves native tokens (in fact, this feature was included in the main network at the end of last year, but it was announced use it only now).

    The nodes will be able to choose which transactions they will process based on the currency of the commission. For example, any node operator will want to accept a transaction whose commission is paid in Waves tokens. And if the node operator considers that a particular asset is worth nothing or is it a fraudulent token, it will most likely be blacklisted.

    And this is where the confusion begins. If transaction fees can be paid with Incent, WCT, Ripto Bux, and so on, why keep the Waves?

    Flexibility is attractive


    First, the ability to pay commissions to certain tokens is extremely attractive for business. The platforms that appeared earlier, such as CounterParty and Nxt, required that the fee for each transfer of tokens be paid in the platform’s own currency (BTC and NXT, respectively). This created additional difficulties. If you are a developer creating a wallet for a specific token, you should provide the ability to somehow conduct the acquiring of this currency and ensure that the user always has enough of it to complete transactions. Any workaround at best will not be optimal, and often - and at all frankly ineffective.

    Following two years of discussions that led to the emergence of Incent, this moment was an important factor in deciding to work with Waves as an infrastructure partner. Before the launch of Waves, there was not a single platform that would provide the ability to use a single currency. It was amicably decided that the difficulties associated with using a second currency to pay for token transactions are too great. All later blockchain platforms already took this moment into account and solved the problem using sidechains or affiliated chains (Ardor, Stardis, etc.). Therefore, the attractiveness of such features of mining tokens for business should not be underestimated.

    It is counterproductive to restrict users in choosing which tokens they use to pay commissions. There is some kind of perverse logic in this: forcing network users to pay a commission with separate (own) tokens. If you think a little, then, obliging users to keep and use their own tokens, you increase demand, causing prices to rise.

    All this is true with some reservations. In fact, it turns out that you scare users away when it becomes too difficult and expensive to use the platform. In the rapidly developing market of blockchain ideas and technologies there is simply no room for platforms that impose such rigid and unreasonable demands on users. Experience shows that other platforms that are better suited for business will take the place of such platforms.

    In short, if you want to get users, you need a customer-oriented platform. Mining tokens, as well as convenient UX - an important part of customer focus.

    “Free” money is more valuable.


    It may seem that mining tokens limits the demand for Waves. This statement is true, but only for a short period of time.

    Network nodes will process transactions that they believe are valuable. The default currency is Waves. If you pay a commission in Waves, almost every node will want to process your transaction. Moreover, the nodes will add to the white lists those tokens that they are happy to accept as a commission. And most likely, they will add to the black list tokens, which are considered worthless or fraudulent. If no node wants to process transactions that are trying to pay a commission in SCAMTOKEN, SCAMTOKEN users will be forced to pay a commission in Waves currency.

    If your business uses Waves, you will almost certainly want to keep the site and add your token to the whitelists. This means that anyone who believes in your project and in the value of your token will process your transactions. And you will receive commissions in your tokens, the value of which you have no doubt.

    Within the entire network, tens and hundreds of different tokens will be accepted as a commission. The more transactions, the more profitable to keep the node. But in order to keep the knot, you will always need Waves (today you need 10,000).

    The site operators themselves decide what to do with the commission received, regardless of the currency. They can sell them to pay for servers, no matter if they are Waves, WCT or Ripto Bux. They can leave them to increase the market value of assets. As far as we know, nodes can sell Waves to people to pay the same transaction fees, reducing artificial demand arising from this mandatory requirement. In the same way as in the case of Bitcoin miners, node holders have the right to freely dispose of their earnings. And we do not want to tell them how to deal with money. That is their business.

    History and common sense suggest that trying to limit people to use money, you end up making them completely powerless. So did the owners of the mines in the remote mining villages where the earnings could be spent exclusively in the shops of the employer. Money is more valuable when it is “free”, when it can be disposed of at its discretion. Similarly, open source software differs from its opposite - licensed programs. Waves Tokens embody these values. Host operators will appreciate the Waves because the platform brings them money. Traders will appreciate the Waves, because the currency has the potential of profit and demand from the nodes.

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