January 22, 2021, 7:00AM EST
• 10 min read

Gas tokens as a fee reduction tool

Quick Take

  • High Ethereum gas price leads to an increase in gas tokens’ popularity.
  • The CHI token from 1inch is most often used, despite its primary users being on-chain arbitrageurs.
  • The amount of gas used in transactions to obtain a gas refund in the future is less than one percent of the total gas used.
  • There are both ordinary speculators on the gas tokens market, expecting a doubling in the gas price for break-even, and arbitrage bots.

Join The Block Research for exclusive research like this

Gain access to this research piece and 100s of others, including ecosystem maps, company profiles, and topics spanning DeFi, CBDCs, banking and markets. Together with additional services, we help organizations understand what’s happening in the rapidly developing digital asset ecosystem.

Already a Research Member? Login Here