Zcash proposes a dynamic fee mechanism aimed at addressing network congestion and rising transaction costs.

According to Jinse Finance, and as reported by CoinDesk, the Zcash core development team ShieldedLabs has released a detailed proposal for a dynamic fee market aimed at addressing network congestion and rising transaction costs. The proposal suggests adopting a dynamic pricing mechanism based on the median fees of the previous 50 blocks and introducing a priority channel during periods of high demand.

Currently, Zcash uses a static fee model, initially set at 10,000 zatoshi and later reduced to 1,000 zatoshi. Although the previous ZIP-317 proposal introduced behavior-based billing, it still maintained a predictable low-fee structure. With the rebound in ZEC prices, an increase in retail users, and growing institutional interest, developers believe the current fee model is no longer sustainable.

The new proposal will be implemented in phases: first with off-chain monitoring, then as a wallet strategy, and finally as a consensus change after approval. This mechanism avoids the complexity of EIP-1559 while preserving Zcash’s privacy features.