Zcash Floats Dynamic Fee Plan to Ensure Users Won’t Be Priced Out

Zcash Floats Dynamic Fee Plan to Ensure Users Won’t Be Priced Out

Source: CoinDesk

Published:2025-12-09 05:41

BTC Price:$90112

#ZEC #Crypto #Fees

Analysis

Price Impact

High

The proposal for a dynamic fee plan directly addresses critical issues of network scalability and user experience, which is a significant positive for zcash's long-term viability and adoption. the market reacted immediately with a 12% surge.

Trustworthiness

High

The proposal originates from shielded labs, a key zcash developer, and is presented as a detailed blueprint for community discussion. it aims for a phased, careful rollout to minimize risks, indicating a well-researched and credible initiative.

Price Direction

Bullish

A dynamic fee mechanism will make zcash more resilient to network congestion and rising transaction costs, ensuring the network remains usable and accessible even with increased demand and higher zec prices. this fundamental improvement is bullish for its long-term value proposition.

Time Effect

Long

While the immediate price reaction was significant (12% surge), the full benefits of a dynamic fee system in terms of improved network health, user retention, and broader adoption will materialize over the long term as the plan is implemented and refined.

Original Article:

Article Content:

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Zcash Floats Dynamic Fee Plan to Ensure Users Won’t Be Priced Out ZEC zoomed 12% amid the fee discussion, beating gains across all major tokens. By Shaurya Malwa Updated Dec 9, 2025, 5:41 a.m. Published Dec 9, 2025, 5:41 a.m. What to know : A new proposal by Shielded Labs suggests a dynamic fee market for Zcash to address rising transaction costs and network congestion. The proposed system uses a median fee per action observed over the prior 50 blocks, with a priority lane for high-demand periods. The changes aim to maintain Zcash's privacy features while avoiding complex protocol redesigns. A key Zcash developer has published the first detailed blueprint for a dynamic fee market, opening a community discussion about how the decade-old network should price transactions as ZEC’s price, user activity and institutional interest climb. The Monday proposal, released by Shielded Labs, lays out a shift away from Zcash’s historically static fee model — originally 10,000 ‘zatoshi,’ later cut to 1,000 — which worked during low demand but eventually contributed to “sandblasting” spam episodes that clogged wallets and congested the chain. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . An earlier ZIP-317 proposal’s move to action-based accounting fixed the abuse vector, but retained predictable, low fees that don’t adjust to usage. Action-based accounting treated every Zcash transaction component — such as spends, outputs, JoinSplits, Orchard actions — as a single uniform “action,” letting fees scale with activity rather than byte size. Developers say that with ZEC’s recent resurgence, new retail onboarding and the emergence of Zcash digital-asset treasuries, the status quo is becoming less tenable. It said some users have started to report rising transaction costs in ZEC terms, and edge-case scenarios — like large sets of tiny user transactions costing double-digit ZEC to shield — show how fee rigidity breaks down when token prices climb. The proposed mechanism introduces a simple, stateless dynamic fee design built around “comparables,” or the median fee per action observed over the prior 50 blocks, padded with synthetic transactions to simulate always-on congestion. The median becomes the standard fee, bucketed into powers of ten to reduce linkability and avoid leaking user information. Under stress, a temporary priority lane opens at 10× the standard fee, giving users a way to compete for block space without redesigning the protocol. The system is designed to roll out in phases. First is off-chain for monitoring, then as wallet policy, and only later — if approved — as a simple consensus change with expiry-height limits and power-of-ten fee rules. That avoids the complexity and fork risk of EIP-1559-style mechanisms while keeping Zcash’s privacy constraints intact. Other ideas floated include using mining difficulty as a long-term heuristic for USD-denominated fees to tune prices based on mempool pressure. ZEC traded around $395 on Tuesday, up more than 12% in 24 hours as traders digested the first concrete roadmap for fee reform since ZIP-317. More For You Protocol Research: GoPlus Security By CoinDesk Research Nov 14, 2025 Commissioned by GoPlus What to know : As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M. GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month. Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B. View Full Report More For You ETH, ADA, SOL Steady as Timezone Data Shows Europe Drove Deepest Bitcoin Selloff Since 2018 By Shaurya Malwa 51 minutes ago The broader market held its recent rebound, though liquidity remained thin ahead of Wednesday’s Federal Reserve decision. What to know : Bitcoin steadied near $90,400 after a turbulent November, with Europe leading the sell-off. Strategy acquired 10,624 BTC, increasing its holdings to 660,600 BTC, amid concerns of potential index removal. The broader market held its recent rebound, though liquidity remained thin ahead of Wednesday’s Federal Reserve decision. Read full story Latest Crypto News USDC Issuer Circle Secures Abu Dhabi's ADGM License in Middle East Expansion 11 minutes ago ETH, ADA, SOL Steady as Timezone Data Shows Europe Drove Deepest Bitcoin Selloff Since 2018 51 minutes ago Dogecoin Holds $0.14 Floor as Network Activity Hits 3-Month High 1 hour ago Bitcoin Traders Target $20K Bitcoin Strike as Deep Out of the Money Options Gain Traction 1 hour ago XRP Traders Eyes Breakout Above $2.11 as U.S. ETFs Cross $1B Milestone 1 hour ago Asia Morning Briefing: BTC Steadies Around 90k With Liquidity Drained and a Fed Cut Fully Priced In 3 hours ago Top Stories CoinDesk's Most Influential 2025 14 hours ago Asia Morning Briefing: BTC Steadies Around 90k With Liquidity Drained and a Fed Cut Fully Priced In 3 hours ago ETH, ADA, SOL Steady as Timezone Data Shows Europe Drove Deepest Bitcoin Selloff Since 2018 51 minutes ago CFTC Launches Digital Assets Pilot Allowing Bitcoin, Ether and USDC as Collateral 7 hours ago U.S. Regulator Pushes Back on Banks Fighting Crypto's Pursuit of Trust Charters 9 hours ago 40% of Canadian Crypto Users Flagged for Tax Evasion Risk, Canadian Tax Authority Reveals 11 hours ago