KEY TAKEAWAYS
- Hedera introduces a new fee model, HIP-1084, eliminating charges for successful Ethereum transactions by relay operators.
- This update aligns Hedera’s fee structure with Ethereum’s, reducing costs for high-volume relay operators like Thirdweb and Arkhia.
- The model charges fees only for transactions failing due diligence, preserving network security while offering cost savings.
- The transition is seamless, requiring no code changes, and enhances Hedera’s user-friendly network approach.
Hedera has announced a significant update to its transaction fee model with the implementation of HIP-1084: Zero Cost Ethereum Transaction on Success. This update aims to eliminate charges for successful Ethereum transactions submitted by relay operators, aligning Hedera’s fee structure more closely with Ethereum’s while maintaining network security.
Currently, relay operators such as Thirdweb, Arkhia, and HGraph incur a fee of approximately $0.0001 for every Ethereum transaction they submit, regardless of the transaction’s success. This has led some operators to adopt non-standard business models to cover these costs, adding complexity for both users and operators. Although individual transaction fees are minimal, they can accumulate significantly for high-volume relay operators, forcing them to either absorb costs or develop alternative fee structures.
How the New Fee Model Works
Under the new model, relay operators will only be charged for transactions that fail due diligence checks. Successful transactions, including those resulting in contract reverts, will incur no relay operator fees. End users will continue to pay standard gas fees, maintaining consistency with Ethereum’s traditional approach.
This success-based model preserves protection against network misuse through targeted fee mechanisms while eliminating costs for legitimate transactions. The approach follows a practical design philosophy where fees apply only when serving a purpose. Relay operators can now design services with greater flexibility, knowing successful operations carry no network overhead.
Benefits and Implementation
The new model exempts relay operators from fees in several common transaction scenarios, creating significant cost savings for standard operations. These zero-fee transactions cover the majority of typical network interactions, allowing relay operators to process most legitimate user transactions without incurring any network charges.
Fees will still apply in specific situations where transactions fail pre-execution checks, serving as a security mechanism against potential network abuse. By maintaining fees for these edge cases, Hedera preserves essential network protections while removing costs from successful and legitimate operations.
The transition to the new fee model will be seamless, requiring no code changes from relay operators or end users. This update maintains all existing security measures while optimizing the cost structure for legitimate transactions. The change represents a significant step forward in Hedera’s commitment to providing an efficient and user-friendly network.
For more detailed information, the official announcement can be found here.
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