Zerion Announces L2 Subsidizing Transaction Fees

Zerion projects fee subsidies will offset revenue from user acquisition to its wallet service.

By: Samuel Haig Loading...

Zerion Announces L2 Subsidizing Transaction Fees

Zerion, a web3 smart account provider, announced plans to launch a Layer 2 network that won’t charge transaction fees to users.

Announced on March 14, Zerion’s forthcoming Zero Chain will subsidize gas fees for users, taking advantage of the massive reduction in Layer 2 transaction costs following the activation of Ethereum’s Dencun fork and EIP-4844 upgrade, also known as proto-danksharding.

EIP-4844 replaced gas-intensive calldata with binary large objects (blobs). Calldata previously accounted for between 73% and 90% of Layer 2 transaction costs, with proto-danksharding driving L2 fee reductions of between 50% and 98%.

“It’s great to see gas this low with EIP-4844,” said Evgeny.eth, the CEO and co-founder at Zerion. “The next stop is ZERO.”

“ZERO fees are coming,” tweeted Zerion. “ Zero Network. Coming Soon.”

Zerion told The Block it plans to launch Zero Chain in late Q2 or early Q3 of this year. Zerion said it plans to implement measures designed to identify transaction spam in order to avoid subsidizing the associated fees.

Zerion offers smart accounts, which leverage account abstraction to provide advanced wallet functionality. Users can manage and monitor tokens, staked assets, and NFTs across 14 different networks from a single interface.

Zerion is betting that subsidizing transaction fees will drive acquisition for its wallet service, with the project hoping to earn greater revenue from wallet service fees than is spent to subsidize user transaction fees.