Arbitrum Orbit today introduced support for custom gas tokens, enabling Orbit blockchains to utilize specific ERC-20 tokens for transaction fees. Until now, Orbit chains were limited to using only Ether as the gas token. However, developers can now use select ERC-20 tokens, for handling transaction fees on their networks.
Gas tokens are digital tokens used to pay for transaction fees on blockchain networks, particularly on the Ethereum blockchain.
“The release of Arbitrum Orbit’s custom gas token capability allows teams to build their applications on L2, while also increasing their freedom to create unique native economics and token utility specific to their needs,” David Dennis, product marketing lead at Offchain Labs – the main developer of Arbitrum – told Metaverse Post.
Custom gas tokens for Arbitrum Orbit chains are now supported!Orbit chains can now use any ERC20 token for their transaction fees, allowing projects to build vibrant native economies.Since the initial launch of Arbitrum Orbit, custom gas tokens have been the most… pic.twitter.com/pxWh582q4M
— Arbitrum ( , ) (@arbitrum) January 4, 2024
Arbitrum Orbit’s Update Enhances Flexibility for End-Users
The incorporation of ERC-20 tokens as gas tokens brings about a more adaptable and streamlined transaction procedure. However, “the ERC20 token does need to meet the technical criteria, such as fee-free transferability, no rebasing, and 18 decimal address, amongst others,” said Dennis.
One prominent example is Xai Gaming, an Orbit chain created in partnership with Arbitrum, which stands ready to capitalize on this feature promptly.
“Arbitrum’s mission is to align with and scale Ethereum and to build tools that allow the ecosystem to thrive. Whether it is DeFi or another market segment, custom gas tokens add to the technology toolkit that empowers open innovation, interoperation, and choice,” said Dennis.
“It gives more options for teams to build what they want to build,” he added.
The primary objective of this implementation is to diminish user friction, a hurdle in the widespread adoption of web3 gaming. Besides Xai Gaming, other blockchain projects, including Caldera and Celestia, are also expected to capitalize on the custom gas tokens feature.
Arbitrum Orbit, launched in March 2023, continues to attract developers to the Arbitrum ecosystem. The platform allows developers to build Orbit chains on Arbitrum One and Arbitrum Nova, the two Layer 2 networks of Arbitrum. Notably, the custom gas tokens feature is currently exclusive to Orbit AnyTrust chains.
Arbitrum Orbit’s integration of custom gas tokens represents a progressive moment for blockchain technology, resulting in a new era of flexibility and utility for developers. The immediate adoption by projects like Xai Gaming underscores the practical impact of this upgrade, offering smoother transactions and reduced friction for users in web3 gaming and beyond.
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