Network Fee Smoothing

Proposals
1

In the GMX v2.2 + v2.3 proposal (Gmx v2.2 + v2.3), there is a proposal to add a network fee pool to help subsidise network costs.

The development work for this is in progress, as there continues to be feedback about the high network costs during times of congestion, would like to propose a temporary solution in the meantime.

Some stats on the network fee costs, taking the month of Dec 2024 as an example, there were a few high volatility days in this month

95% of transactions had a fee of less than 0.001 ETH (~3-4 USD), 5% of transactions had a fee higher than 0.001 ETH.

We propose to increase the network fee when the network is not congested, in order to subsidise fees when the network is congested.

To give an example of the potential network costs before and after this proposed change:

Network Fees Network is not congested Slightly congested Congested
Before 0.00007 ETH (~ 0.25 USD) 0.001 ETH (~3-4 USD) 0.001 ETH to 0.076 ETH (~260 USD)
After 0.00014 ETH (~ 0.5 USD) 0.002 ETH (~6-8 USD) 0.002 ETH to 0.009 ETH (~30 USD)

So the network fee costs are higher when the network is not congested / slightly congested, this builds up a reserve which is used to reduce the network fee cost when the network is congested.

Note that the above is just an example, the actual changes in cost may vary as the logic for the subsidy is optimized, but the main logic would be the same.

This proposal would require a snapshot vote to implement.

6 Likes
2

As the peak in network fees during blockchain congestion is one of the very few remaining crucial pain points for GMX imho, Iā€™m all in favour of this straightforward solution.

3 Likes
3

I can see what you want to do I just question the need for it? Like you pointed out it would only be for 5% of transactions. I think people are used to gas fluctuations and just see it as a price for using defi platforms, maybe if the 5% figure was closer to 25% then I could see why you would want to implement it. Or on the other hand some users will end up paying more just by trying to avoid busy periods. Put me right if I am missing something