Case for Micropayments

The fundamental problem with charging transaction fees is that micropayments don’t work, especially for low-value user actions. When a fee is charged on every transaction, it limits the types of transactions that a decentralized network can process. Regardless of how rational the argument for the necessity of fees, users still hate the experience of being nickeled and dimed for everything that they do.

Imagine if Uber charged a fee every time the user updated his account, booked a ride, and left the driver a review. That wouldn’t work. Users expect certain things to be free. Requiring users to make a decision on whether or not an action is worth a small fee creates anxiety that causes users to leave. A transaction can’t be worth so much as to require a decision but worth so little that that decision is automatic.