Avalanche Octane: Optimizing C-Chain Fees and Gas Target

The Avalanche Octane upgrade represents a significant advancement in blockchain technology, specifically targeting the optimization of the Avalanche C-Chain through the activation of Avalanche Community Proposal 176 (ACP-176). This upgrade is designed to reduce AVAX gas fees and enhance the network's capacity to handle increased demand while maintaining stability and performance.

Improving the Dynamic Fee Mechanism on the C-Chain

The Avalanche C-Chain currently operates with a static gas target of 15,000,000 gas per 10-second rolling window, utilizing a modified version of the EIP-1559 dynamic fee mechanism. However, this mechanism has inherent limitations that can lead to unpredictable transaction costs. When blocks consume their full gas limit, the system can experience significant spikes in gas prices. Notably, even smaller subsequent blocks within the same window can trigger further price increases, creating inefficiencies in fee predictability and user experience.

The Octane upgrade addresses these challenges by implementing an improved dynamic fee mechanism that builds upon the approach previously introduced in ACP-103. This mechanism determines the base fee of each block more intelligently, allowing the system to better handle blocks that consume large amounts of gas. By refining how base fees are calculated and adjusted, the upgrade significantly reduces AVAX transaction fees on the C-Chain while maintaining network stability. Comprehensive gas fee simulations have been performed and publicly shared through Avalanche Developer Community discussions, demonstrating the effectiveness of this optimization approach.

This improvement ensures that users experience more stable and predictable transaction costs, even during periods of high network activity, making the C-Chain a more reliable and cost-effective platform for decentralized applications.

Validator Voting on Target Gas Consumption

Previously, modifying the C-Chain's static target gas consumption rate required a formal network upgrade, making it challenging to adapt quickly to performance improvements or hardware advancements. This limitation hindered the network's ability to respond dynamically to changing conditions.

The Octane upgrade introduces a more flexible solution by enabling Primary Network Validators to dynamically adjust the target gas consumption rate based on their collective preferences. Rather than requiring a network-wide upgrade, validators can now set their desired target gas consumption either through default configuration values or by independently choosing values based on their specific considerations. This democratic approach allows the network to scale more effectively in response to varying loads and future growth.

Validators have the flexibility to make strategic choices based on their network perspective. A validator prioritizing high transaction throughput and lower gas fees may vote to increase the gas consumption target over time, enabling the network to process more transactions and utilize resources more efficiently. Conversely, validators concerned about infrastructure capacity can set more conservative targets. However, validators must carefully consider whether their hardware can reliably support the computational and storage resources required to maintain their chosen gas target level.

This mechanism empowers the network to evolve organically, with validator participation ensuring that gas targets align with both network capabilities and community preferences, creating a sustainable and scalable ecosystem.

Conclusion

The Avalanche Octane upgrade represents a comprehensive approach to optimizing the C-Chain's performance and user experience. By implementing an improved dynamic fee mechanism, the upgrade delivers cheaper AVAX gas fees and more predictable transaction costs. Simultaneously, by enabling validators to dynamically adjust gas consumption targets, the upgrade provides the flexibility needed for the network to scale effectively in response to future growth and demand.

Together, these enhancements reinforce Avalanche's commitment to providing a low-cost, high-performance blockchain platform. The Octane upgrade ensures that the C-Chain can maintain stable transaction fees even during high-demand periods, while the validator-driven gas target adjustment mechanism allows the network to evolve with community needs. These optimizations position Avalanche as a leading platform for building the next generation of decentralized applications, combining speed, scalability, and cost-efficiency.

FAQ

Is AVAX used for gas?

Yes, AVAX is the native currency used to pay transaction fees (gas) on the Avalanche network. It can also serve as gas on certain subnets within the Avalanche ecosystem.

What is the gas token on AVAX?

The gas token on AVAX is AVAX. It is used to pay for transaction fees on the Avalanche network and powers all transactions and smart contract executions.

How are gas fees calculated on AVAX?

Gas fees on AVAX are calculated based on the block's base fee plus your gas fee cap and optional gas tip. The total fee equals the base fee multiplied by gas units used, plus any priority tip you set to expedite your transaction.

How can I reduce gas fees on the AVAX network?

Execute transactions during off-peak times when network congestion is low. AVAX gas fees are inherently lower than ETH. Use AVAX tokens for potential rebates, and batch multiple transactions together to optimize costs.

How does AVAX gas compare to Ethereum gas fees?

AVAX gas fees are significantly lower than Ethereum, averaging around $0.01 per transaction compared to Ethereum's much higher fees. Complex transactions on Avalanche typically cost only a few dollars.