Crypto Needs Flat Base Fees and Dynamic Scaling

Imagine if Google charged you 10x normal price for every search, LLM inference, or youtube video because they run out of servers and hit some internal capacity.

That's how EIP1559 and most blockspace pricing mechanisms work--in times of congestion, instead of increasing capacity (like sane business do), chains raise prices instead.

Recall there are two types of fees:

- Inclusion/base fee: fee required for a transaction to be included.

- Priority fee: fees for getting in front of the queue to access contentious state (e.g. hot onchain markets)

If onchain apps is to seriously compete with non-crypto apps, we need flat inclusion/base fee for every chain for any transaction demand.

Q: What's the problem if chains adopt constant base fees?

A: Capacity. A constant base fee means that there is no way to discriminate against incoming transactions once chains hit a limit.

Solution? Dynamically scaling!

Simply process more transactions as they come through, without a global limit.

For too long now we have relied on crypto-economists to solve the fee vs. chain capacity problem. It is now the time to let computer scientists and engineers do the work--we need to build chains dynamically scale.

Ask yourself what is the better product decision for endusers:

- Increase fees at times of congestion

- Add compute capacity to the system to accommodate demand

The answer is self-evident. We've been building the wrong product for more than a decade!

How do we do this? We need to build better system at every layer:

- Authenticated data structures that can horizontally scale without global bottlenecks

- Execution models & VMs that allow infinite parallelism

- Distributed consensus that allow blocks to be dynamically sized

We need flat fees for data (blobs) and execution (gas/CU).

Dynamic scaling is the future for crypto.