The most important change in the upcoming Lino Blockchain upgrade is the network fee model change. In the original design of Lino blockchain, we made all on-chain messages free by adopting the Dynamic Bandwidth Model. However, in practice, the Dynamic Bandwidth Model is fairly hard to prevent network attacks while keeping the blockchain user-friendly.

On the other hand, the BTC-like fee model cannot directly apply to Lino Blockchain. It’s counter-intuitive to charge a dynamic network fee when a user donates a small amount of money(the network fee may be much higher than the donation amount).

Therefore, we introduced a hybrid fee model to the Lino blockchain: dynamic bandwidth model for all developer signed messages(DSM); dynamic fee model for general messages(GM). In other words, all the in-app operations(DSM), including creating posts and donating, will remain free, while the other operations(GM), such as transferring and claiming bonus, will be charged for a network fee. All fees will go to Lino Blockchain validators for subsidizing the infrastructure cost for processing messages.

The expected ratio between the number of DSM and GM is 8:2. Therefore, we allocated 80% of the bandwidth quota to DSM, and 20% to GM. That is to say, if the max Message Per Second(MPS) is 100, the bandwidth quota allocated to DSM and GM are 80 and 20, respectively. If the current MPS of DSM exceeds 80, each DSM will consume more bandwidth at an exponential speed. Similarly, if the current MPS of GM exceeds 20, each GM will cost more fee at an exponential speed. In other words, the busier the Lino blockchain is, the more fee will be charged.

All Lino developers share the bandwidth quota allocated to DSM, based on each developer’s Locked Points. For instance, @dlivetv has 600,000 locked points and @linowallet has 200,000 locked points, and therefore @dlivetv will have a quota of 60 MPS quota while @linowallet will have 20 MPS.

Different fees will be applied to GM depends on the current MPS of GM:

### Example

For instance, given the max MPS (300 messages per second) and our current MPS of GM (less than 3 general messages per second), the MPS usage in % is 3/(300*20%) = 5%. Transferring LINO Points will cost a network fee of 0.03346 LINO Points.