Stellar Protocol 11 Improvements: Part 1
On June 10, validators on the Stellar network will vote to upgrade the network to Protocol 11. Protocol outlines three main changes, the first change being better transaction pricing.
Before Protocol 11, when submissions to a ledger exceeded network capacity, the network entered surge pricing mode. You had to submit the transaction fee you were willing to pay to add your transaction to ledger beforehand. If you had undershot the guessed amount, other transactions would leapfrog yours for confirmation on the ledger because they were willing to pay a higher fee. If the network capacity was light you still had to pay the fee you specified regardless.
After Protocol 11, this method is replaced with a VCG auction. The user now picks the maximum fee they are willing to pay, but they will be charged with the lowest fee possible. If the network activity is light, the user pays the lowest fee. If the network activity is heavy you still only pay the maximum amount you specify and no more. Being bypassed will still occur.
Source: SoftwareReviews, Accessed July 19, 2019
Our Take
This allows users to simply dictate the maximum fee they are willing to pay and not worry about overpaying. Users will be able to save on transaction fees, and it helps the network ensure confirmation on important transactions.