Arbitrum Orbit supports the selection of ERC-20 tokens as transaction fees

[ad_1]

New features help increase the token utility of projects on Arbitrum Orbit, thereby expanding the ecosystem.

On January 4, Arbitrum Orbit announced that it will allow developers to use a large number of ERC-20 tokens (which fully meet the requirements) to build Layer 3 blockchains on the network. technical standard) as a transaction fee.

Notably, the option to use custom ERC-20 tokens to pay gas fees will help increase the token utility of projects on Arbitrum Orbit, thereby expanding the ecosystem.

In this regard, David Dennis, head of product marketing at Offchain Labs, Arbitrum’s lead developer, explained: “Arbitrum’s support for custom Gas tokens is designed to satisfy the desires of projects that work with Arbitrum, thereby helping to promote project development and expand the ecosystem. For example, a game that wants to have an in-game economic model but still wants to be built on On top of Arbitrum and Ethereum.”

Previously, the Orbit chain could only use ETH as Gas token.

Arbitrum Orbit Chain

Immediately after announcing the new Gas token support feature, Xai Gaming became the first project to use the feature. It is understood that in June 2023, Xai cooperated with Arbitrum to develop the Orbit chain and host games from web3 game publisher Ex Populus. Team Ex Populus has experience working at gaming companies such as Pixar, Ubisoft and Activision Blizzard.

“Current Web3 games have yet to succeed due to traditional user barriers. However, using the custom Gas token feature, the Xai protocol will use the Gas subsidy contract to pay Gas fees on behalf of users. This greatly reduces end-user operations, thereby attracting more Many users join the project.

In addition, we also incentivize nodes to use XAI tokens to protect network security. This can solve the validator’s dilemma that occurs in distributed systems. All of the above is achieved through Orbit’s custom Gas token. “

Soban Saqib (Soby), co-founder of Ex Populus

Arbitrum says other blockchain projects that will immediately take advantage of custom Gas token capabilities are Caldera and Celestia.

Orbital and Ecosystem Growth

Arbitrum Orbit was launched in March 2023 to attract more developers to the Arbitrum ecosystem. Chain Orbit can be built on Arbitrum One and Arbitrum Nova (Arbitrum’s two layer 2 networks). As for the custom Gas token feature, Arbitrum is only supported on the Orbit AnyTrust chain. Arbitrum provides rollup and AnyTrust technologies to build Orbit chains.

“Arbitrum Nova is a type of AnyTrust chain, but not all chains using AnyTrust technology are Nova.”

According to DeFiLlama data, Arbitrum One is the largest second-layer Ethereum network, with a total value currently locked in smart contracts of approximately $2.5 billion. Arbitrum’s ARB token also hit an all-time high of $2.10 and is currently trading around $1.90. Arbitrum recently issued approximately $40 million worth of ARB tokens to 29 projects to develop the ecosystem.

Current ARB price

VIC encryption compilation

related news:

Metaverse platform on Arbitrum raises $13M, led by Jump Crypto