SOLANA FEES, PART 1

Summary from the TLDR Crypto newsletter

This article provides an introduction to Solana’s fee mechanism. Solana's transaction fees are split into a base fee and a priority fee, with half of each being kept by the network leader and the other half being burned. Solana also charges for new state creation. Issues with the current system include inefficiencies due to a lack of optimization incentives, the potential for collusion between transaction senders and leaders, and the absence of a localized fee market.