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Grammar + spelling (MystenLabs#7962)
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after-ephemera authored Feb 1, 2023
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Expand Up @@ -4,7 +4,7 @@ title: Sui’s Gas-Pricing Mechanism

Sui’s gas-pricing mechanism achieves the triple outcomes of delivering users with low, predictable transaction fees, of incentivizing validators to optimize their transaction processing operations, and of preventing denial of service attacks.

This delivers good user experience to Sui users, who can focus on using the Sui network without worrying about having to forecast the current market price of gas fees. Since validators agree on a network-wide reference price at the start of each epoch, Sui users use the reference price as a credible anchor when submitting their transactions. Moreover, the price setting mechanism is designed to reward good validator behavior, thus aligning incentives between SUI token holders, the network’s operators (i.e. the validators), and its users.
This delivers a good user experience to Sui users, who can focus on using the Sui network without worrying about having to forecast the current market price of gas fees. Since validators agree on a network-wide reference price at the start of each epoch, Sui users use the reference price as a credible anchor when submitting their transactions. Moreover, the price setting mechanism is designed to reward good validator behavior, thus aligning incentives between SUI token holders, the network’s operators (i.e. the validators), and its users.

A unique feature of Sui’s gas price mechanism is that users pay separate fees for transaction execution and for storing the data associated with each transaction. The gas fees associated with an arbitrary transaction $\tau$ equal:

Expand Down Expand Up @@ -46,6 +46,6 @@ The $StoragePrice$ is set exogenously through the governance proposal with the g

Overall, users submitting transactions with computation gas prices at or close to the current epoch’s $ReferencePrice$ and storage gas prices at the targeted $StoragePrice$ face good user experience. Sui’s gas price mechanism provides end users with credible reference prices for submitting their transactions. By incentivizing validators to elicit their true reservation prices and honor these quotes, users can credibly assume their transactions will be processed in a timely manner.

Once Sui enables horizontal sclaing, validators can add more workers as demand for on-chain activity scales. This increases their costs linearly at the same pace of network activity and lets them process more transactions at the same low gas prices. In cases of extreme network congestion where validators cannot scale fast enough, the tip’s presence provides a market-based congestion pricing mechanism that discourages further demand spikes by increasing the cost of transacting on the Sui platform.
Once Sui enables horizontal scaling, validators can add more workers as demand for on-chain activity scales. This increases their costs linearly at the same pace of network activity and lets them process more transactions at the same low gas prices. In cases of extreme network congestion where validators cannot scale fast enough, the tip’s presence provides a market-based congestion pricing mechanism that discourages further demand spikes by increasing the cost of transacting on the Sui platform.

In the long run, Sui’s gas mechanism creates incentives for validators to optimize their hardware and operations. Validators who invest in becoming more efficient are able to honor lower gas prices and obtain a stake reward boost. Sui validators are thus encouraged to innovate and improve the experience of end users.

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