Ava Labs CEO Emin Gün Sirer Unveils Next-Gen Fee Isolation Strategies for Avalanche Blockchain
In a series of tweets, Emin Gün Sirer, the CEO of Ava Labs, the company behind the Avalanche Blockchain, shared insights into cutting-edge fee isolation strategies. Fee isolation, as Sirer explains, involves localizing fees based on specific restrictions that a protocol may want to enforce. In a comprehensive seven-tweet thread, Sirer delves into various methods and introduces the concept of multi-dimensional fees.
Exploring Fee Isolation Methods
Sirer begins by outlining different ways to implement fee isolation on the blockchain. In his first tweet, he notes that one approach involves making smart contracts that generate a significant amount of traffic pay higher fees than others. He uses the example of Solana’s approach, highlighting the use of four execution cores that process transactions in parallel, with priority fees determining the execution order in case of conflicts.
The Concept of Multi-Dimensional Fees
Sirer goes on to propose what he considers a superior approach to fee isolation—multi-dimensional fees. This innovative concept involves charging dynamic fees based on the type of computation, allowing for a more nuanced and protocol-enforced fee structure. For instance, read operations could incur lower fees compared to more resource-intensive write operations. The granularity extends to allowing developers to set fees based on specific OPCODEs, offering a high degree of customization.
1/7 Sound ways to do fee isolation, a quick thread.
There are multiple ways to do fee-isolation on chain. For those that need a refresher, fee isolation is the idea of localizing fees based on some specific restriction that the protocol may want to enforce.
— Emin Gün Sirer🔺 (@el33th4xor) November 12, 2023
Graph-Based Fee Isolation
In the sixth tweet, Sirer introduces the idea of creating a computation graph for each conflict and charging fees based on the complexity of this graph. This approach, he argues, provides a more generalized and precise way to implement fee isolation, allowing for nearly arbitrary forms of fee differentiation. The emphasis is on protocol enforcement, ensuring that fee dynamics are systematically maintained.
The Power of HyperSDK
Sirer concludes the thread by highlighting the capabilities of HyperSDK, the Avalanche library for chain creation. He asserts that HyperSDK enables developers to parametrize fee dynamics extensively, providing them with significant flexibility. This empowerment, Sirer notes, is a game-changer for developers seeking to customize their blockchain’s fee structures.
Looking Ahead
Emin Gün Sirer’s tweets not only provide valuable insights into the intricacies of fee isolation but also underscore the commitment of AVA Labs to pushing the boundaries of blockchain technology. As developers explore the possibilities offered by HyperSDK, the industry can anticipate a new era of blockchain customization and efficiency. For a detailed overview of these concepts, Sirer directs readers to a thread by Patrick O’Grady, offering an in-depth exploration of the innovative fee isolation strategies unveiled by AVA Labs.
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