Sunsetting Incognito   

Fees

#1

Okay, so I am fully aware fees are a part of anything financial. However, why does Incognito charge fees to transfers funds between incognito accounts? Seems a bit like “taxation without representation” I know of no other xchange/trading platform that charges for funds being moved in their own accounts. Its very frustrating when.you decide X amount will go here and then when all is said and done your like wait, that cost me how much!?

2 Likes
#2

You mean the 0.00000006 PRV?

Because any transaction willing to be added to the blockchain need to be validated by people who are called validators or miners, and this validators wont waste their time and money to validate this transactions for free, so the blockchain ask users to give a small fee to pay to the validatos. Anyone can be a validator if they stake 1750 PRV and host the node in a server or in a physical node, this way the system can be decentralized.

3 Likes
#3

You should have been given 0.1 PRV when you first opened your account. That should cover fees for the rest of eternity if fees stay so low.

3 Likes
#4

Hi @Tryche that is a very good question!

  1. Trading platforms and exchanges are centralized companies that keep your crypto in one wallet. Every time you make transaction between addresses in these platforms your crypto is not moved at all, they just change data on servers, so it cost nothing.

  2. When you send a transaction on decentralized platforms (wallet, dex, defi) each time you making a transaction you interact with blockchain protocol and every transaction on blockchain protocols ( bitcoin, ethereum, incognito) require a transaction fee. This fee goes as additional payments to the network validators (I know on incognito chain fee close to zero, but it’s totally another discussion)

3 Likes
#5

@andrey Thank you. That was exactly the answer I was looking for! To everyone one else, I am fully aware of validations and miners. also its, not about how much each transaction is, I was trying to state that with as big of a battle Crypto has to gain real world traction with the masses, to full adoption which I assume is what we all would like too see, then paying fees for everything, even between your own wallets is gonna be a problem. Again thanks Andrey. I had figured something along those lines.

3 Likes