> For the complete documentation index, see [llms.txt](https://docs.phron.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.phron.ai/whitepaper/proof-of-concept-phron-layer-1/sophia-protocol/indirect-ltfm-protocol.md).

# Indirect – LTFM Protocol

Sophia implements efficiently a set of processes to manage transactions while avoiding triggering spikes in transactions costs. Implemented indirectly as Low Transaction Fee Management (LTFM) Protocol. The transaction fees are being reduced by an incredible magnitude of 8X, the number is sure to make the chain even cheaper to interact with. This makes the blockchain even more suitable for accommodating, High-Frequency DeFi, or other large-scale use cases

But still dynamic fee adjustment is unavoidable. They create the financial incentives for providing services and guarantee the further development of the project in question.

So theoretically If the block has fewer transactions than the targeted block saturation, the price will diminish by a minor amount. If a block is subject to more transactions, the fees will be accordingly priced higher.


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