zkSync Launches Dynamic Fees, Elevates Testnet to New Heights
The competition among Layer-2 solutions is heating up with numerous projects receiving significant investment in technology, teams, and backing from major funds like Optimism and Starknet. Recently, zkSync, a Layer-2 solution currently in testnet, officially unveiled its Dynamic Fees feature—a key milestone in its development.
zkSync Launches Dynamic Fees, Elevates Testnet to New Heights
Like other Layer-2 solutions, zkSync requires users to pay fees, distinct from Layer-1 (Ethereum) costs. zkSync’s operational model is similar to Ethereum’s, where each transaction incurs a fee based on the blockchain resources it consumes.
To optimize the fees users must pay, zkSync has introduced an automated fee adjustment mechanism (Dynamic Fees) based on the blockchain’s current workload.
If the blockchain is processing many transactions simultaneously, fees will automatically increase to ensure processing speed and compensate those validating transactions. Conversely, if fewer transactions are being processed, fees will decrease to encourage user participation.
Dynamic Fees
Today, all transactions on zkSync 2.0 testnet incur fees independent of transaction logic and Layer-1 costs. Our new fee model mirrors Ethereum’s with L2-specific adjustments. Each transaction is priced based on the resources consumed.
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— zkSync (@zksync) August 16, 2022
On zkSync, Dynamic Fees will be utilized for:
- Executing transactions and generating proof of validation
- Utilizing storage on Layer-1 (Ethereum)
- Verifying proofs on Layer-1 (Ethereum)
- Additional interactions on Layer-1 (Ethereum)
In addition to automatic adjustments, zkSync’s Dynamic Fees will allow users to pay transaction fees using various tokens, which will be automatically converted to ETH for compatibility. This presents a significant technological challenge for smart contracts. Successfully implementing this could greatly advance Ethereum’s development towards Account Abstraction.
If you're unfamiliar, Account Abstraction is a long-term goal under development on Ethereum. It enables users to merge a regular wallet with a contract account (smart contract account), facilitating more automated and intelligent tasks. A crucial feature of Account Abstraction is allowing users to pay with multiple token types beyond ETH.
Read more: Account Abstraction – When Crypto Wallets and Smart Contracts Merge
Beyond its importance for Account Abstraction, the launch of Dynamic Fees during the testnet phase subtly hints at zkSync’s potential token issuance. Thus, it’s a good time to engage with the testnet for a chance at future airdrops.
We’ll continue to monitor and evaluate zkSync’s Dynamic Fees and provide updates. See you in the next articles!
