How SKALE Calculates Gas Fee Savings

SKALE is a gas-free EVM modular blockchain network that offers a unique advantage by eliminating these fees for its users.

As of September 2024, SKALE has saved users over $8 billion, or 3.2 million ETH in gas fees. Lets dive into the methodology employed to quantify the gas savings, ensuring transparency and highlighting the benefits of its solutions.

The Formula for Gas Fees Saved on SKALE

SKALE calculates the gas fees saved by comparing the gas usage on its network to what it would cost on the Ethereum mainnet. The formula used is straightforward:

Gas Fees Saved for Day D = Total Gas Used on SKALE Network for Day D × Gas Price on Ethereum Mainnet for Day D

Where:

• Total Gas Used on SKALE Network for Day D is the sum of all the gas used by transactions on the SKALE network for a specific day. SKALE tracks this usage meticulously to ensure accurate calculations.
• Gas Price on Ethereum Mainnet for Day D is the time-weighted average gas price on the Ethereum mainnet for the entire day. This average provides a balanced view of what the gas cost would have been on Ethereum, since gas prices on Ethereum Mainnet fluctuate throughout the day.

When SKALE calculates gas fees saved, it instantly records these savings in both ETH and USD for that day. SKALE's Dune Dashboard also calculates gas fees saved over other EVM blockchains.

Daily and Cumulative Savings

The gas fees saved are calculated daily, and these daily savings are summed up to get the cumulative gas fees saved:

Cumulative Gas Fees Saved = ∑𝑛 Gas Fees Saved for Day D

Where 𝑛 is the number of days being considered. This approach allows SKALE to provide an ongoing tally of the total gas fees saved, showcasing the long-term benefits to its users.

Let’s walk through a hypothetical example to illustrate how SKALE calculates gas fees saved.

Day 1

• Total Gas Used on SKALE: 1,000,000 units
• Time-weighted Average Gas Price on Ethereum: 100 Gwei
• Gas Fees Saved for Day 1: 1,000,000 × 100 = 100,000,000 Gwei
• Converted to ETH: 0.1 ETH (since 1 ETH = 1,000,000,000 Gwei)
• Converted to USD: $200 (assuming 1 ETH = $2,000)

Day 2

• Total Gas Used on SKALE: 1,200,000 units
• Time-weighted Average Gas Price on Ethereum: 90 Gwei
• Gas Fees Saved for Day 2:  1,200,000 × 90 = 108,000,000 Gwei
• Converted to ETH: 0.108 ETH
• Converted to USD: $216 (assuming 1 ETH = $2,000)

Cumulative Savings

• In Gwei: 100,000,000 + 108,000,000 = 208,000,000 Gwei
• In ETH: 0.1 + 0.108 = 0.208 ETH
• In USD: $200 + $216 = $416

Zero Gas Fees on SKALE. Forever.

SKALE’s method for calculating gas fees saved is both transparent and precise, ensuring that users and developers can clearly see the financial benefits of using the network.

Explore the SKALE ecosystem and, for developers, check out the official documentation to start building today!