TechFlow news, December 9 — According to CoinDesk, Shielded Labs, the core development team of Zcash, 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 fee of the previous 50 blocks and introducing priority lanes 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 recovery of ZEC prices, increasing retail users, and growing institutional interest, developers believe the current fee model is no longer sustainable.
The new proposal will be implemented in phases: starting with off-chain monitoring, followed by adoption as a wallet strategy, and finally consensus-level changes upon approval. This mechanism avoids the complexity of solutions like EIP-1559 while preserving Zcash's privacy features.
