Gas Recoveries
Understanding Gas Fee Recoveries with Blink
Introduction to Ethereum Gas Fees
Every Ethereum transaction requires a gas fee, which consists of two main components:
Base Fee: A mandatory fee set by the network, which adjusts dynamically based on demand to ensure transactions are included in a block.
Priority Fee: An optional incentive paid to validators or builders to prioritize faster transaction processing.
How Blink Recovers Priority Fees
Blink processes over 15% of daily Ethereum transactions and works closely with block builders, who are responsible for including transactions in Ethereum blocks. By leveraging our large-scale network and deep integration with the transaction lifecycle, Blink recovers a portion of the Priority Fees without impacting transaction speed or causing delays.
With the separation of proposing and building roles in Ethereum’s Proposer-Builder Separation (PBS) model, the gas fee market can become more efficient and fair. However, many users still overpay to ensure their transactions are included in a block. Blink helps recover the difference between these overpayments and the actual fair market price for gas fees.
Example of Overpayment Recovery:
Consider a simple "send" transaction, which uses 21,000 gas units.
A typical user might set their gas price at 1 Gwei per unit.
The fair market price, approximately equal to the transaction with the lowest priority fee in a block, is typically around 0.05 Gwei per unit. However it can vary dramatically.
In the case that 0.05 Gwei is the "fair" price, the user in our example has overpaid by:
This translates to roughly $0.05 (as of September 2024).
Blink’s expertise lies in optimising gas fee markets for our customers, aiming to recover as much of this overpayment as possible, with no impact on the speed of transaction inclusion.
Is Gas Recovery Relevant to You?
Gas fee recovery may be applicable depending on the nature of your transactions. To learn more and explore how this can benefit your operations, reach out to us at contact@blinklabs.xyz.
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