Supra Upgrade Proposal (SUP) #3 : Gas Price Adjustment

Background

Gas measures the resources a transaction consumes on a blockchain, such as compute and storage. Transactions that use more resources consume more gas. The parameter gas_price_per_unit converts gas units into a token-denominated fee.

When the total supply of $SUPRA was increased from 10 billion to 100 billion before TGE, the minimum gas_price_per_unit was left unchanged to encourage adoption. This decision effectively subsidized transaction fees.

Having completed more than a year since the SUPRA L1 launch, it is appropriate to revisit these subsidies and set a minimum gas_price_per_unit that reflects operational costs, token burn rate, token price, and other relevant factors.

Rationale and example

Since the total token supply was decided to be 100B instead of 10B, an increase of 10x in the gas price is easily justified. When we consider operational costs and the value that SUPRA L1 provides in relation to its token price, even a 1000x increase in the minimum gas_price_per_unit can be justified. In dollar value terms, other chains offering similar technological stack are more than 1000x costlier as compared to SUPRA. All the gas fees collected are burnt at the moment, therefore, an increase in gas price would act toward curtailing circulating token supply.