Ripple’s Chief Technology Officer, David Schwartz, has sparked a groundbreaking discussion in the crypto space, one that could transform how transaction fees work across blockchain networks. In a live thread on X, Schwartz proposed two significant changes to the XRP ($2.01) Ledger’s fee system, aiming to make it fairer, more transparent, and user-friendly.

This open brainstorming session attracted attention from developers, protocol architects, and everyday users alike, highlighting a growing desire in the crypto space to rethink fee structures and incentivization mechanisms.

The Current Problem: Users Pay More Than Necessary

Currently, the XRP Ledger operates with dynamic but non-refundable fees. Users submit a fee to ensure their transaction is processed. However, if the fee is higher than necessary, the excess is burned, gone for good. This design, although simple, leads to a frustrating outcome: users often overpay to ensure their transaction is accepted.

As Schwartz pointed out, this system punishes users who bid honestly. If a user pays more to guarantee transaction inclusion, the network burns the extra amount, even if a lower fee would have been sufficient.

“Everyone overpays. That’s not ideal,” Schwartz wrote in his post.

Proposal 1: Refund the Excess After Consensus

In his first idea, Schwartz suggests refunding any fee amount above the actual minimum needed to gain inclusion in the ledger. After the network reaches consensus on which transactions are accepted, it calculates the marginal fee, the lowest amount required to get the last accepted transaction into the block.

Users who paid more than that threshold would receive a rebate for the difference. This model rewards honesty without disincentivising users from bidding high during busy network periods. However, Schwartz acknowledges one major obstacle: achieving validator consensus on the rebate calculation without creating security risks or performance bottlenecks.

Still, he believes protocol-level adjustments could solve this.

Proposal 2: Median-Based Fee Refunds

Schwartz’s second idea is more straightforward. The XRP Ledger would calculate the median fee among all accepted transactions in each ledger version. Any payment made above this median would be partially refunded.

This method is easier to implement, but it does not eliminate the risk of overpayment. If users continue bidding at their maximum price point, many would still spend more than they need to. Nevertheless, this approach moves closer to fee transparency and reduces penalties for honest bidding behaviour.

Related article: Ripple’s Secret Strategy: Why XRP Sales Are Powering a Global Financial Takeover

No Official Roadmap; But the Dialogue Has Begun

Neither proposal is officially scheduled for rollout, but Schwartz’s public comments signal that Ripple is seriously exploring better fee models. The open forum also reflects a broader industry shift toward optimising user experience, rather than relying on outdated structures that favour protocol simplicity over fairness.

By taking these initial steps, Ripple continues to demonstrate leadership in building a blockchain ecosystem that prioritises innovation, efficiency, and equity.

The post Ripple CTO Pushes for Fairer Fee System: “Everyone Overpays, That’s Not Ideal” appeared first on FXcrypto News.