Developers building on Ethereum Layer-2 network Arbitrum’s Arbitrum Orbit can now construct Layer-3 blockchain networks with the addition of special token support for paying blockchain transaction fees. Arbitrum announced on January 4th that this development now permits the use of certain ERC-20 tokens that meet technical criteria to process transaction fees on Orbit blockchain networks.
Noteworthy Development from Arbitrum
Until recently, only Ethereum could be used to pay transaction fees on Orbit networks. Having the option to use ERC-20 tokens for transaction fees will allow Orbit ecosystems to create benefits for their own tokens and to grow their ecosystems. David Dennis, the product marketing leader of Arbitrum’s main developer Offchain Labs, stated:
“For example, a game might want to have an in-game economic model but still want to build on the foundation of Arbitrum and Ethereum.”
Xai Gaming will be one of the first to benefit from the special transaction fee tokens feature. Xai initially collaborated with Arbitrum last June to develop an Orbit ecosystem and host games for Web3 game publisher Ex Populus. The Ex Populus team has experience from gaming companies like Pixar, Ubisoft, and Activision Blizzard:
“The Xai protocol, having a special transaction fee token, can pay for transaction fees on behalf of users through a transaction fee contract. This significantly reduces costs for the end-user.”
The Largest Layer-2 Network
Arbitrum announced that other blockchain projects that will immediately benefit from the special transaction fee tokens feature are Caldera and Celestia. According to blockchain data analytics platform DeFiLlama, Arbitrum One is the largest Ethereum Layer-2 network, with a total value locked in smart contracts currently around $2.5 billion.
Arbitrum’s native ARB token also reached an all-time high yesterday at $2.04 and is currently trading at around $1.94. Arbitrum recently awarded approximately $40 million worth of ARB tokens to 29 projects to further grow its ecosystem.
