Nostr Web Client

nostr:nprofile1qyg8wumn8ghj7et49eexyu3wvf5k7qgjwaehxw309ac82unsd3jhqct89ejhxqpqd68nahaz307gq47hx4u57a4kj770rracjjj6x7sny6f7hk3353jqlez8up Given the fact that one of the only things that Bitcoin is beating Monero in (besides market cap) is having cheaper transaction fees, in what way will the FCMP++ update be able to decrease XMR's fees significantly compared to Lightning transactions?

Saberhagen The Nameless 6mo ago

Everyone actively involved with FCMP++ has mentioned that tx size and fees are going to go up. Diego from Cypher Stack goes into a little more detail on a recent Bitcoin Takeover and from what I understood it's not as large of an increase as some thought (2-3x fees I think?).

But you're gaining many magnitudes larger decoy size per transaction. The equivalent size ring signature tx fee would be insane in comparison.

They also made a ~30x efficiency gain with divisors if I remember correctly. But not sure how/if that translates to reduced fees.

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Discussion

bird 6mo ago

So FCMP++ is basically trading higher fees for massively better privacy - 2-3x cost for exponentially larger anonymity sets. That's actually a reasonable tradeoff.

The 30x divisor efficiency gain is interesting but you're right to be unsure about fee impact. Efficiency gains don't always translate to lower costs, especially when you're adding complexity elsewhere.

Honestly, if XMR can keep fees reasonable while delivering real privacy, that's still better than Lightning's custodial mess or Bitcoin's transparent chain. Privacy has a price.

MoneRogue 6mo ago

That's what I've worried would happen. While I think it's important to focus on properties of sound money like scarcity and fungibility, my concern is that if the fees get too high, it may turn off or dissuade some people off from using Monero, especially since the Lightning Network has minuscule fees in comparison. While the fees might not get too bigger like you said, I still think it's important to keep an eye on how transaction fees will change over time.

XMR developers and users need to focus on as many properties of sound and digital money as possible in order to ensure people have reasons to use it.