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Hello Hive,
How's it going? It's NEO here, a Telos Senior Eagle with another news straight from Telos Blockchain :)
If you ever wondered about how gas fees works on TelosEVM than below is a short explanation from one of our developer Jesse.
Our EVM runs as a smart contract within our native network.
Resource management between the two of them is completely different, so we had to establish sound economic safety between native chain and how the EVM contract manages gas billing and storage/compute resources at the native level.
The EVM contract has no extra privilege on the native network so has to pay for it's own resources there, and charge appropriate for them in the EVM.
The EVM sets gas price based on the cost of the storage (RAM) resource at the native level. That RAM resource price is based on supply/demand using bancor algorithm, and the validators all collectively agree when it's time to increase the RAM supply that they'd all be comfortable running their nodes with.
SO! What "we"did was collectively as a group of validators increase the RAM supply, which reduced the cost a good amount, which allowed the EVM contract to get a better price, to reduce the gas price that is derived from that RAM cost... so the gas would be as cheap as it is.
We could have added MORE supply to the RAM which would've set the gas to LESS. But we wanted to leave plenty of room to add more supply later (you cannot reduce it).
Originally before anything was final and this economic model was established... we thought gas was going to be cheaper. Instead of increasing the supply to a much higher amount, to get that low-low gas price, we decided to meet somewhere in the middle and keep room to reduce cost in the future.
Got any questions? Let me know in comments.
Thank you.
Stay safe.
/NEO
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