Callisto Network Introduces the Dynamic Gas Price
Last updated
Last updated
Callisto Network is a blockchain-based on Proof-of-work algorithm, i.e., miners validate transactions by providing the network with dedicated equipment in compensation for which they receive a reward.
Because they ensure the network’s security, Callisto Network needs to maintain an appropriate level of profitability for CLO mining.
On June 20, 2019, we implemented the new monetary policy, designed to ensure Callisto’s long-term sustainability by reducing the CLO’s inflation rate without changing its max cap.
This is a three-phase policy, each phase reducing the block reward as detailed below.
From block 2 750 001 (est. 01.06.2019), we will reduce four times the block reward by 40% (every 1 500 000 blocks ~250 days). Then lower it by 35% to 50.54 CLO by 2022. At each block reward’s reduction, the miners’ reward will be reduced by 5%, and that of the Cold Staking increased by 5%.
During this phase, the block reward will remain the same.
Reduce block reward by 2% each 500,000 blocks starting at 55,250,001 block (est. 2040 year).
However, this measure could have a perverse effect, as the block reward reduction is likely to lead to a temporary decline of the CLO mining profitability.
This is where Callisto Network’s new feature, the dynamic gas price, comes in. By applying a dynamic gas price, Callisto Network intends to ensure constant rewards to miners while maintaining its ability to provide safe and cost-effective transactions to users at any stage of its development.
Currently, the gas cost is fixed at one gwei, whatever the CLO price. With the Dynamic Gas Price mechanism, the gas cost will be adjusted from 5,000 to 21 gwei, depending on the CLO rate, thus giving miners the incentive to maintain their equipment on the network.
Below is a table detailing the calculation method of gas cost based on the CLO price.
We are planning to implement this measure in two stages:
From January 20th, the Callisto Web Wallet will operate according to the new gas price schema. Miners will have to accept a minimum of 21 satoshis per transaction (every wallet should set this amount of gas).
On February 20th, 00:00 UTC, all miners, mining pools, stock exchanges, and wallets should be working with 5,000 Gwei per transaction as a fee.
For the second Callisto’s hard fork of this year (2020), we will introduce the Callisto client’s change, getting the gas price dynamically from a smart contract. Every 10 minutes, a smart contract will receive an update of the price and based on that price, the smart contract will return a suitable gas price to different clients.
Set the following parameters, from January 15th:
And `–miner.gasprice 21000000000 –txpool.pricelimit=21000000000`.
And `–miner.gasprice 5000000000000 –txpool.pricelimit=5000000000000`.
If you are a wallet operator, an exchange operator or any other node working on transactions. You could use the public RPC node to get the gas price average of the latest blocks to set it automatically:
curl –location –request POST ‘https://clo-geth.0xinfra.com’ \
–header ‘Content-Type: application/json’ \
–data-raw ‘{“jsonrpc”:”2.0″,”method”:”eth_gasPrice”,”params”:[],”id”:67} ‘
We recommend setting the gas limit to 5,000,000.
–miner.gastarget “5000000”
We are contacting exchanges and wallets to deploy these changes, and individual exchanges started working with 21 Gwei per trade even before this article was published.
Since a few days ago, bootnodes are not queuing transactions with gas prices below 21 Gwei.
And after February 15th, nodes will not queue transactions with gas prices below 5,000 Gwei.
