As a crypto enthusiast you will be used to paying transaction fees on everything. But transaction fees are rising, damaging adoption and pricing many users out of the market. Imagine getting charged for simply exchanging currency notes in the physical world. It would seem absurd and yet that’s become accepted behaviour in crypto.
SmartFi is different.
SmartFi is set to revolutionize crypto with its native stablecoin, SFUSD, to be the first token to have zero fees. Any payments made using SFUSD would be completed without any transaction fees being incurred on the network. Our speculative token, SMTF, will also soon be free of transaction fees later this year.
This is in stark contrast to the tyranny of transaction fees that every other blockchain levies on its users, which the users have no option but to pay to use their own property.
Due to the way crypto is designed, most large blockchains incur high charges for transaction verification, which inevitably gets passed on to the user. This leads to fee tyranny by third parties or intermediates. While you may feel that crypto does not include intermediaries or tertiaries, we’ll show you how this works, a little further through this read.
First, let us understand fee tyranny in its basic sense. All cryptocurrency blockchains charge fees for payment transactions. Making a payment is the essence of a currency and that should not be taxed and should be free. Those blockchains are charging you to use your own property.
No fee, no matter how small or large, should be charged for using your own property. In many cases, miners of these networks are being arbitrary and accepting transactions only from higher paying users for completing transactions. This can lead to exorbitant fees and a significant loss in the transaction value rendering it economically unusable.
This is contrary to why Bitcoin was developed: initially as a solution to end interference from dishonest third-parties while conducting transactions and to promote transparency. In short, this is fee tyranny.
Success for a currency is a matter of scale and ease of use. The supply has to be large enough for everyone to hold the balances that represent the stored productivity they are able to accumulate. It also has to be practical and costless, no fees. Does it pass the Big Mac test? Can you tell someone off the top of your head at any point in time what it currently costs in a currency to buy a Big Mac? If so, it is probably usable as a currency.
Economist, Steven Horwitz, who has written extensively on Austrian economics, monetary theory and macroeconomics discusses this topic in the book Monetary disequilibrium theory and Austrian Macroeconomics.
“The advantage of holding money rather than other assets is that money provides the service of being "available" if one desires to make a purchase. This notion of "availability" is equivalent to "liquidity," and the liquidity of the medium of exchange is (near) absolute. No other asset can be costlessly used [NO FEES] to make exchanges, thus the advantage that money has over other assets.”
Ideally a cost should only be incurred in a transaction when a party extends credit or some other type of service beyond just the facilitation of a payment.
This is in stark contrast to a zero-sum proposition where a transaction fee is being levied simply for instantaneous exchange of digital assets from one point to another. Thus the party that extends credit has the potential to create real value by investing or consuming, ensuring all parties and the network grow, leading to a win-win-win situation for everyone involved. This is unlike the network usage transaction fee where the users stand to lose whilst the network benefits arbitrarily.
As our CEO, Aaron J. Tilton states, “On our SmartFi network the Treasurers’ (our miners) report hashrate cost information in the CLP (Commodity Layer Protocol) which correlates the cost to run the network with the block rewards gained from a portion of the paid loan interest. The interest from the loans pays for the cost of the network and therefore there is no need to charge any transaction fees.”
Like they say, the proof is in the pudding. Currently all cryptocurrency blockchains are evolving into a type of fee tyranny. The proliferation of cryptocurrency tokens and networks is an indicator of the dissatisfaction of high fees and poor user experience prevalent in the market.
Low user adoption due to poor experience will persist as long as the same reward protocols resulting in transaction fees exist in cryptocurrency. The networks will evolve into virtual technocrat monarchies and software protocol tyrants.
SmartFi’s value proposition is not one where for us to succeed others must fail. In fact, on the contrary SmartFi actually provides a solution for token holders and miners from other networks who are stuck with the transaction fee-based models, by allowing merged mining for more rewards and lending opportunities and borrowing against those other tokens and coins for a hedge.
SmartFi provides all the requisite controls to SMTF holders, which allows them to set the value of the Equality coins as they deem fit. No fees for these transactions mean that there is no need for manipulation. Basically, the network success sinks or swims based on what the participants do. By providing credit and financial products to the market at a rate and quality that’s balanced based on demands and market expectations, the participants are able to serve each other fairly and equitably.
SmartFi is revolutionizing cryptocurrency transactions by providing a fair and equitable playing field for all involved, without charging them any fees for proprietary transactions. Sign up on SmartFi today, and start your wealth creation journey.