Showerthought: ZKRs should be loss-leading, with max ~$0.10 transaction fees* for the end user. Verification price capped at ~250 gas. Cost to rollup: $12,000/day, decreasing rapidly with growing activity, with break-even at 3.33 TPS*. From there, tx fees will keep decreasing.
This solves for the chicken-and-egg problem of low activity = high costs and thus low demand. The $12K/day can either come from the rollup team's marketing budget, or from token inflation. For perspective: SOL, DOT, AVAX, ADA etc. are subsidizing >$10M per day - $12K is peanuts!
The way I see it: if a ZKR cannot have 3.33 TPS activity soon, then it's surplus to requirements anyway. So, rollup teams should just consider it a small fraction of what should be much larger marketing & bizdev budgets, even if there's no token.
Related, for both OR & ZKR teams: use more aggressive gas estimation. E.g. Optimism's 1.5x buffer seems excessive IMO, with a moving average of basefee I think it can be very close to 1.0x over time.
Tl;dr: Rollups are handicapping themselves, need to be much more aggressive.
Tl;dr: Rollups are handicapping themselves, need to be much more aggressive.
*Assumptions:
- 10 minute SNARK rollup batch, 100 minute STARK rollup batch
- Gas price: 41 gwei (currently). So, could be $25K/day during mania phases.
- 16 byte calldata, prover & other costs per tx: $0.03
- Pardon me for using "TPS"!
- 10 minute SNARK rollup batch, 100 minute STARK rollup batch
- Gas price: 41 gwei (currently). So, could be $25K/day during mania phases.
- 16 byte calldata, prover & other costs per tx: $0.03
- Pardon me for using "TPS"!
Note: $12K/day is actually worst-case scenario of 1 tx/batch. An illustration of how quickly the subsidy decreases with activity. At 0.1 TPS, it's already down to $1,000/day!
Look forward to hearing counter-arguments from ZKR teams as to why they should not do this!
Look forward to hearing counter-arguments from ZKR teams as to why they should not do this!
There's obviously a lot more to this, but only so much I can see in a Twitter thread. Two commonly anticipated comments: more complex transactions will cost more, while more compressible ones (e.g. dydx) will cost less. Some rollups like Polygon Hermez are already doing this.
Taking this further, as suggested by @levin_idan. IMX & DYDX have $9B FDV, stands to reason StarkNet & zkSync tokens will be higher. At 8% inflation, that's enough to subsidize 500 TPS at $0.01. If we consider SOL-like inflation, >5,000 TPS possible.
https://twitter.com/levin_idan/status/1474992586582630401
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