@Fexonice1
more from that month
I have been following the development of SmartBCH from the telegram chat group and the kuinfu site forum, one thing I still can't understand about the development is the burning of BCH to reduce gas fees. If you understand how this works or how it will affect BCH please do feed me the information in the comment section. I need the information for an update.
7 comments
SmartBCH's burning solution is basically 50% back to chain and 50% burned permanently. I'm not too sure still what it means, but with a very small and dwindling fee chart with SmartBCH, it will probably raise the price. Maybe.
It will not increase the gas fees. Gas fees will only increase if the network is overloaded. That won't happen anytime soon.
I didn't say it will increase the gas fees, though. But yeah, good point.
Sorry I misunderstood you. You meant the increase in the price of BCH. I thought you meant the increase in the price of gas fees (some people are afraid of this).
It's all good. I do place my descriptions as best as I can do so anyhow.
You worded everything right. I just read someone on Reddit who was afraid of this and was influenced by his post. That was definitely my mistake.
>I still can't understand about the development is the burning of BCH to reduce gas fees The burning of BCH should not be used for the reduction of gas fees. It is to be used to reduce the total amount of BCH in circulation, making BCH scarcer and more valuable. It will work as follows: to use SmartBCH, BCH will be exchanged for SmartBCH tokens (I assume the token will be called SmartBCH) through a gateway 1:1. Once BCH has been exchanged for SmartBCH, the BCH can no longer be used on the Bitcoin Cash network. It can only be used on the SmartBCH network. The sum of all BCH would then have to be calculated like this: BCH from the Bitcoin Cash network plus SmartBCH token from the SmartBCH network. Gas fees are paid for transactions on the SmartBCH network (just like on the Ethereum network). The difference to Ethereum is that half of the gas fees are burnt and no longer made available to the network. This means that there will be fewer and fewer SmartBCH tokens. If you add up the BCH from the Bitcoin Cash network and the available SmartBCH tokens, the total will be less and less over time. So BCH (and SmartBCH token, because it will always be worth the same as BCH) will become more and more valuable. I hope I have written it understandably.