XRC-GAS: Gas Price Behavior

Version: 1.0
Last updated: 2025-01-06

This document specifies the gas price behavior on the XGR Network for developers integrating applications.
It explains how gas pricing works, how to estimate transaction costs, and what to expect compared to standard Ethereum-compatible networks.

Overview
Key differences from standard EIP-1559
Gas price behavior
Transaction cost estimation
RPC endpoint behavior
Fee structure
Best practices for integration
FAQ

1. Overview

The XGR Network uses a modified EIP-1559 gas model optimized for predictable transaction costs.

Key characteristics:

Gas price remains stable under normal network conditions
A network-governed minimum base fee ensures price predictability
Standard EIP-1559 transactions and tooling work without modification
Spam protection activates automatically during high network load

For most integrations, XGR behaves like any EIP-1559-compatible chain. This document explains the specific behaviors that differ from Ethereum mainnet.

2. Key differences from standard EIP-1559

2.1 Compatibility

Feature	Support
Transaction types	Legacy (Type 0) and EIP-1559 (Type 2)
Transaction fields	`gasPrice`, `maxFeePerGas`, `maxPriorityFeePerGas`
RPC endpoints	`eth_gasPrice`, `eth_maxPriorityFeePerGas`, `eth_feeHistory`
Tooling	All standard Ethereum tooling (wallets, libraries, frameworks)
Gas estimation	`eth_estimateGas` works as expected
Effective price calculation	`min(maxFeePerGas, baseFee + maxPriorityFeePerGas)`

2.2 Behavioral differences

Aspect	Standard EIP-1559	XGR Enterprise Model
Base fee at low load	Decreases toward zero	Fixed at minimum
Base fee at normal load	Fluctuates around target	Fixed at minimum
Price floor	None	Network-governed minimum
Priority fee (tip)	Required (>0) for inclusion	Optional (suggested: 1 gwei)
Price increase trigger	Above 50% block utilization	Above 80% block utilization
Maximum increase rate	+12.5% per block	+25% per block (above 80% only)
Price decrease behavior	Gradual (-12.5% per block)	Immediate return to minimum
Minimum adjustment	Governed by protocol	Governed on-chain (no hard fork required)

2.3 Visual comparison

        Standard EIP-1559                        XGR Enterprise Model

baseFee                                 baseFee
   ↑                                       ↑
   │       ╱╲    price                     │                   ╱ emergency
   │      ╱  ╲   fluctuates                │                 ╱  pricing
   │     ╱    ╲  continuously              │               ╱
   │    ╱      ╲                           │             ╱
   │   ╱        ╲                          │           ╱
   │  ╱          ╲                         │         ●  
   │ ╱            ╲  can                   │  stable  │ minBaseFee
   │╱              ╲ approach zero         │  pricing │ (on-chain)
   └─────────────────────→ load            └─────────────────────→ load
                                                     80%

Key insight: On XGR, gas price equals the on-chain minimum under normal conditions, enabling reliable cost forecasting.

3. Gas price behavior

3.1 On-chain governance

The minimum base fee (minBaseFee) is stored in the EngineRegistry smart contract and can be adjusted through network governance without requiring a hard fork.

Parameter	Source	Adjustable
`minBaseFee`	EngineRegistry contract	Yes (governance)
Congestion threshold	Protocol	Fixed at 80%
Maximum increase rate	Protocol	Fixed at 25%/block

Developers should query the current minBaseFee via RPC rather than hardcoding values.

3.2 Normal operation (≤ 80% network utilization)

Under normal conditions:

baseFee = minBaseFee (from EngineRegistry)

The base fee remains constant regardless of whether utilization is 10%, 50%, or 80%.

3.3 High load operation (> 80% network utilization)

When network utilization exceeds 80%, the base fee increases progressively:

Network Utilization	Base Fee Behavior
≤ 80%	Stable at `minBaseFee`
85%	Increases ~6.25% per block
90%	Increases ~12.5% per block
95%	Increases ~18.75% per block
100%	Increases ~25% per block (maximum)

3.4 Recovery behavior

When utilization drops below 80%, the base fee immediately returns to minBaseFee. There is no gradual decay period.

4. Transaction cost estimation

4.1 Cost formula

Transaction Cost = Gas Used × Effective Gas Price

Effective Gas Price = min(maxFeePerGas, baseFee + maxPriorityFeePerGas)

Under normal network conditions:

Effective Gas Price = minBaseFee

Note: XGR suggests a small non-zero priority fee by default (for wallet compatibility). Users can still set it to 0 manually.

4.2 Calculation examples

The following examples use hypothetical values for illustration. Actual network parameters are governed on-chain.

Assumption for examples: minBaseFee = 100 Gwei

Operation	Typical Gas	Calculation	Example Cost
Native transfer	21,000	21,000 × 100 Gwei	2,100,000 Gwei
ERC-20 transfer	~65,000	65,000 × 100 Gwei	6,500,000 Gwei
ERC-20 approve	~46,000	46,000 × 100 Gwei	4,600,000 Gwei
NFT transfer	~85,000	85,000 × 100 Gwei	8,500,000 Gwei
Simple swap	~150,000	150,000 × 100 Gwei	15,000,000 Gwei
Complex DeFi operation	~300,000	300,000 × 100 Gwei	30,000,000 Gwei

Note: Gas consumption varies by contract implementation. Use eth_estimateGas for accurate estimates.

4.3 Cost estimation approach

Scenario	Recommended Approach
Real-time transactions	Query `eth_gasPrice` for current effective price
Budget forecasting	Query current `minBaseFee` + small buffer
Worst-case planning	Add 25-50% buffer for potential congestion periods

4.4 Comparison: Cost predictability

Network Type	Price Variability	Budget Reliability
Ethereum Mainnet	High (10x+ swings common)	Low
L2 Rollups	Medium	Medium
XGR Network	Low (stable at minimum)	High

5. RPC endpoint behavior

5.1 Gas price endpoints

Endpoint	Returns	Description
`eth_gasPrice`	`baseFee`	Suggested price for legacy transactions
`eth_maxPriorityFeePerGas`	`1 gwei`	Suggested priority fee (not required)
`eth_feeHistory`	Historical data	Base fees, gas ratios, and reward percentiles

5.2 Expected values under normal load

Field	Typical Value	Notes
`baseFeePerGas` (block header)	`minBaseFee`	Governed on-chain
`eth_gasPrice` response	`minBaseFee`	Ready-to-use for legacy TX
`eth_maxPriorityFeePerGas` response	`1 gwei`	Suggested for wallet compatibility; not required
Suggested `maxFeePerGas`	~2× baseFee	Buffer for compatibility

5.3 The `maxFeePerGas` buffer

Standard tooling typically suggests maxFeePerGas = 2 × baseFee as a safety buffer. On XGR this buffer is often unnecessary due to price stability, but does not cost extra—users only pay the effective price.

You specify	Network baseFee	You pay
`maxFeePerGas = 200 Gwei`	100 Gwei	100 Gwei (effective)
`maxFeePerGas = 150 Gwei`	100 Gwei	100 Gwei (effective)
`maxFeePerGas = 110 Gwei`	100 Gwei	100 Gwei (effective)

6. Fee structure

6.1 Fee distribution

Transaction fees are distributed using a fixed formula, independent of EIP-1559 tip mechanics:

Total Fee = Gas Used × Gas Price

1. Burn (fixed):     1000 Gwei per transaction
2. Remaining:        Total Fee − 1000 Gwei
3. Treasury:         Remaining × donationPercent%
4. Validator:        Remaining − Treasury

Important: On XGR, maxPriorityFeePerGas is not used as a dedicated “validator tip payout”. If a user sets a non-zero priority fee, it can increase the effective gas price (and total fee), but the resulting fee is still split by the fixed XGR formula (burn + donation + validator).

6.2 Distribution parameters

Parameter	Default	Source	Adjustable
Burn amount	1000 Gwei	Protocol	No
Donation percent	15%	EngineRegistry	Yes (governance)
Donation address	On-chain	EngineRegistry	Yes (governance)

6.3 Example distribution

Assumption: gasUsed = 21,000, gasPrice = 100 Gwei, donationPercent = 15%

Step	Calculation	Amount
Total fee	21,000 × 100 Gwei	2,100,000 Gwei
Burn (fixed)	—	1,000 Gwei
Remaining	2,100,000 − 1,000	2,099,000 Gwei
Treasury (15%)	2,099,000 × 0.15	314,850 Gwei
Validator	2,099,000 − 314,850	1,784,150 Gwei

6.4 Fee transparency

Each transaction emits an event documenting the fee split:

Event	Contract	Data
`XGRFeeSplit`	`0x...fEE1`	`(donationFee, validatorFee, burnedFee)`

This enables transparent tracking of fee distribution for auditing and analytics.

7. Best practices for integration

7.1 General recommendations

Area	Recommendation
Fee estimation	Use RPC endpoints; avoid hardcoding gas prices
Transaction type	EIP-1559 (Type 2) preferred for better UX
Buffer strategy	10-20% buffer typically sufficient (vs. 100%+ on volatile networks)
Retry logic	Standard retry patterns; fee bumping rarely needed

7.2 For wallet integrations

Aspect	Recommendation
Fee display	Show expected cost (effective price), not maximum
User messaging	Emphasize price stability as a feature
Advanced settings	Allow users to reduce `maxFeePerGas` buffer if desired
Stuck transactions	Rare under normal conditions; standard replacement works

7.3 For dApp backends

Aspect	Recommendation
Cost budgeting	Query current `minBaseFee` + 10% buffer
Batch operations	Combine operations where possible to reduce per-TX overhead
Monitoring	Alert if `baseFeePerGas > 1.5× minBaseFee` (indicates congestion)
SLA planning	Use `minBaseFee` as baseline for cost guarantees

7.4 For smart contract developers

Aspect	Recommendation
Gas optimization	Still valuable—reduces costs proportionally
Refund mechanisms	Work normally; unused gas refunded at effective price
Gas stipends	Standard 2300 gas stipend for `.transfer()` applies
Cost estimation	Stable pricing simplifies gas cost documentation

8. FAQ

Pricing

Q: What is the minimum gas price?
A: Transactions must pay at least the current baseFee, which equals minBaseFee under normal conditions. This value is governed on-chain via the EngineRegistry contract.

Q: Can gas prices go to zero?
A: No. The network enforces a minimum base fee that is always greater than zero.

Q: Why does my wallet suggest a high maxFeePerGas?
A: Standard tooling uses a 2× buffer for volatile networks. On XGR this is usually unnecessary, but setting a high maximum does not increase actual costs.

Q: How do I get the current minimum base fee?
A: Query eth_gasPrice for a ready-to-use value, or read baseFeePerGas from the latest block header.

Network behavior

Q: What happens during high network load?
A: Above 80% utilization, base fee increases up to 25% per block. This is a spam protection mechanism and typically temporary.

Q: How quickly do prices recover after congestion?
A: Immediately. When utilization drops below 80%, base fee returns to minBaseFee in the next block.

Q: Is the 80% threshold configurable?
A: No, this is a protocol parameter. Only minBaseFee and fee distribution parameters are adjustable via on-chain governance.

Compatibility

Q: Do standard Ethereum tools work?
A: Yes. All EIP-1559-compatible tooling works without modification.

Q: Are there any breaking differences from Ethereum?
A: No breaking differences. The model is a superset of EIP-1559 with additional stability guarantees.

Q: How do priority fees (tips) work?
A: XGR returns a small suggested priority fee by default (e.g. 1 gwei) for wallet compatibility. Tips are not required under normal conditions. If a non-zero tip is specified, it can increase the effective gas price (and total fee). Fee distribution still follows the fixed XGR split (not a dedicated tip payout).

Appendix: Quick reference

Model parameters

Parameter	Value	Governance
Minimum base fee	On-chain (EngineRegistry)	Adjustable
Congestion threshold	80% block utilization	Fixed
Maximum price increase	25% per block	Fixed
Price decrease	Immediate to minimum	Fixed

Calculation reference

Effective Gas Price = min(maxFeePerGas, baseFee + maxPriorityFeePerGas)
Transaction Cost = Gas Used × Effective Gas Price

Under normal load (default suggestion):
  baseFee = minBaseFee (from EngineRegistry)
  Effectiv eGas Price = minBaseFee + maxPriorityFeePerGas (if specified)

Fee distribution reference

Total Fee = Gas Used × Gas Price

Distribution (fixed formula):
  → Burn:      1000 Gwei (fixed per transaction)
  → Remaining: Total Fee − 1000 Gwei
  → Treasury:  Remaining × donationPercent%
  → Validator: Remaining − Treasury

Note: EIP-1559 tip values do NOT affect this distribution.

XGRChain — Gas Price Behavior

XRC-GAS: Gas Price Behavior

Table of contents

1. Overview

2. Key differences from standard EIP-1559

2.1 Compatibility

2.2 Behavioral differences

2.3 Visual comparison

3. Gas price behavior

3.1 On-chain governance

3.2 Normal operation (≤ 80% network utilization)

3.3 High load operation (> 80% network utilization)

3.4 Recovery behavior

4. Transaction cost estimation

4.1 Cost formula

4.2 Calculation examples

4.3 Cost estimation approach

4.4 Comparison: Cost predictability

5. RPC endpoint behavior

5.1 Gas price endpoints

5.2 Expected values under normal load

5.3 The `maxFeePerGas` buffer

6. Fee structure

6.1 Fee distribution

6.2 Distribution parameters

6.3 Example distribution

6.4 Fee transparency

7. Best practices for integration

7.1 General recommendations

7.2 For wallet integrations

7.3 For dApp backends

7.4 For smart contract developers

8. FAQ

Pricing

Network behavior

Compatibility

Appendix: Quick reference

Model parameters

Calculation reference

Fee distribution reference

XRC-GAS: Gas Price Behavior

Table of contents

1. Overview

2. Key differences from standard EIP-1559

2.1 Compatibility

2.2 Behavioral differences

2.3 Visual comparison

3. Gas price behavior

3.1 On-chain governance

3.2 Normal operation (≤ 80% network utilization)

3.3 High load operation (> 80% network utilization)

3.4 Recovery behavior

4. Transaction cost estimation

4.1 Cost formula

4.2 Calculation examples

4.3 Cost estimation approach

4.4 Comparison: Cost predictability

5. RPC endpoint behavior

5.1 Gas price endpoints

5.2 Expected values under normal load

5.3 The maxFeePerGas buffer

6. Fee structure

6.1 Fee distribution

6.2 Distribution parameters

6.3 Example distribution

6.4 Fee transparency

7. Best practices for integration

7.1 General recommendations

7.2 For wallet integrations

7.3 For dApp backends

7.4 For smart contract developers

8. FAQ

Pricing

Network behavior

Compatibility

Appendix: Quick reference

Model parameters

Calculation reference

Fee distribution reference

5.3 The `maxFeePerGas` buffer