Gas & Fees
Prerequisites
Gas & Fees in Settlus
Settlus has a gas and fees system, much like any other modern blockchain. Gas is a measure of computational effort required to execute a transaction or smart contract on a blockchain. Also, We implement a fee system for the following general reasons such as:
To prevent spamming the network by imposing a cost.
To compensate validators for their resources spent validating / processing transactions.
Settlus primarily adopts the EVMOS Gas and Fees system, ensuring compatibility and efficiency in transaction processing. For information on how EVMOS has seamlessly integrated the Ethereum and Cosmos transaction systems, please check the EVMOS team's implementation. Additionally, Settlus introduces several unique features built upon the EVMOS system:
SETL as a native coin for Settlus transaction fee.
Transactions in the settlement module may not use SETL as a fee, it will incur a fixed transaction fee with stable coin.
Settlement Module Transaction Fee
In the Settlement module of Settlus, we have implemented a fixed transaction fee structure, payable in a stablecoin such as USDC. This approach addresses the unpredictable volatility in cryptocurrency prices, which can be influenced by external factors beyond actual utility-driven supply and demand. Such volatility is particularly dangerous during the initial stabilization phase of the blockchain. Fluctuations in transaction costs can negatively impact creators and platform services, who rely on stability for their operations. In the early stages of the creator ecosystem, instability can be especially detrimental, potentially driving away genuine users and leaving the market dominated by speculative activities. This could prevent the successful establishment of the creator ecosystem. Therefore, for critical transactions within the Settlement Module (such as CreateTenant, Record, etc.), we allow gas fees to be paid in a designated stablecoin instead of the native SETL coin. This policy ensures that the costs for tenants to record transactions remain stable, regardless of SETL's market price.
Fee Distribution
Every block, collected transaction fee in SETL will equally distributed to validators along with block reward. And transaction fee from settlement module will be distributed to validators who run interop-node.
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