Ripple CTO David Schwartz proposes new models for XRP fees to prevent users from overpaying.
One model proposes refunds after confirmation; the other, average fees based on the median.
There is no formal system yet, but Ripple is actively exploring smarter fee structures.
David Schwartz, Ripple's CTO, has returned to the spotlight—this time challenging a fundamental assumption about blockchain fees. In a candid thread on X, Schwartz asked whether users are overpaying just to confirm their transactions and suggested two new ideas that could reshape how fees work on the XRP ledger.
His proposals have already sparked lively discussions among developers and users. The goal? To make fees fairer, more efficient, and less punishing for honest users.
The first proposal: refunds after consensus.
Schwartz's first idea addresses a common issue in crypto—paying more than you need to.
Currently, XRP ledger fees are dynamic but non-refundable. If you bid more than the minimum required for your transaction, the excess is simply burned. This means users who play it safe by overbidding ultimately lose money for being cautious.
To fix this, Schwartz proposes a post-confirmation system: once the network agrees on the transactions that make it into the ledger, it calculates the actual minimum fees required. If a user paid more than this amount, they would receive a refund for the difference.
This would keep incentives in place; users would still want to get included, but without the excessive downside. However, the challenge is getting all validators to agree on that final threshold without risking network issues. Schwartz acknowledges it's tough, but he believes it can be done with the right protocol adjustments.
The second proposal: refund anything above the median.
His second option is simpler: just refund any fees paid above the median for all accepted transactions in that ledger.
It's easier to implement than the first idea, but it's not perfect. If everyone submits the maximum they are willing to pay, the median will be high, and users will ultimately overpay.
Schwartz pointed out, 'Everyone is overbidding. This isn't ideal.' The larger vision is to allow users to reveal what they want to pay without penalizing that.
What does this mean for the XRP and Ripple roadmap?
There is no idea from Ripple's official development roadmap yet, but the fact that Schwartz is opening the floor for discussion shows Ripple's leadership is actively thinking about better fee models.
Both proposals aim to improve the user experience on the XRP ledger, making it more cost-effective, transparent, and fair. As blockchain adoption grows, fee design will become more important, and Ripple seems eager to lead the way.
In the space where every transaction matters, this could be the start of a much-needed rethink about how we pay to use blockchain.
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