Arbitrum Orbit Adds Support for Custom Gas Tokens
Arbitrum Orbit, a platform that enables the development of Layer 3 blockchains on the Ethereum Layer 2 network Arbitrum, has announced the addition of support for custom gas tokens. This means that Orbit blockchains can now use select ERC-20 tokens to pay for transaction fees on their networks, expanding their utility and ecosystem. Previously, Orbit chains could only use ether as the gas token. The inclusion of custom gas tokens opens up possibilities for applications like in-game economic models while leveraging the benefits of Arbitrum and Ethereum. Xai Gaming, Caldera, and Celestia are among the projects that will immediately utilize this feature.
Arbitrum Orbit Chains Utilize Custom Gas Tokens
Xai Gaming is one of the first projects to take advantage of the custom gas tokens feature on Arbitrum Orbit. By using a custom gas token, Xai Gaming’s protocol can pay for gas on behalf of users through a gas subsidy contract, reducing friction for traditional users. This feature aims to address the challenges faced by web3 gaming in attracting mainstream adoption. Additionally, sentry nodes are incentivized with the XAI token to secure the network, solving issues related to distributed systems. Other projects such as Caldera and Celestia will also leverage custom gas tokens.
Driving Growth in the Arbitrum Ecosystem
Launched in March 2023, Arbitrum Orbit was designed to attract more developers to the Arbitrum ecosystem. Orbit chains can be built on Arbitrum One and Arbitrum Nova, which are Layer 2 networks. The custom gas tokens feature is specifically supported on Orbit AnyTrust chains. Arbitrum One is currently the largest Ethereum Layer 2 network with approximately $2.5 billion locked in its smart contracts. The native ARB token of Arbitrum reached an all-time high of $2.04 and is currently trading at around $1.88. To further foster ecosystem growth, Arbitrum recently granted $40 million worth of ARB tokens to 29 projects.
Hot Take: Custom Gas Tokens Boost Utility and Ecosystem Growth
Arbitrum Orbit’s integration of custom gas tokens is a significant development that enhances the utility and growth potential of Orbit chains. By allowing the use of select ERC-20 tokens for transaction fees, developers can create unique economic models and expand their applications while leveraging the benefits of Arbitrum and Ethereum. This feature has immediate implications for web3 gaming, reducing friction for traditional users and incentivizing network security. With projects like Xai Gaming, Caldera, and Celestia already leveraging custom gas tokens, it’s clear that this addition will contribute to the overall expansion and success of the Arbitrum ecosystem.
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