A recent update to Bitcoin Core software has lowered the minimum transaction fee, potentially impacting network usage significantly.
Bitcoin Core 29.1 Update
On September 4, 2023, Bitcoin Core 29.1 was released, setting the minimum transaction fee to 100 satoshis per thousand virtual bytes (0.1 sats/vB), a 90% reduction from the previous default of 1 sat/vB. Users pay their fees in satoshis multiplied by their transaction size.
Expected Adoption of the Update
According to BitRef data, over 72.5% of all Bitcoin nodes (18,811) run Bitcoin Core software, and it is expected that most nodes will stick to this new setting. Nodes do not relay transactions with fees lower than their configured minimum relay fee.
Community Reaction to Lower Fees
Bitcoin Core developer Gloria Zhao noted that the change aims to resolve issues with block propagation as cheaper transactions often go unacknowledged under the old threshold. Bitcoin network data service Mempool.Space also advocated for lower fees, encouraging users not to overpay on the blockchain.
The reduction of minimum transaction fees in Bitcoin Core may lead to more efficient network utilization, albeit the adoption of this change is expected to be gradual.
