To encourage developers to remove unnecessary data on the blockchain the Ethereum network provides a refund for each burned element removed. Gas is rebated to the contract owner when the self destruct method is called in Solidity. Anyone can call this self destruct method to receive this rebate and these rebates can be tokenized.
The 1inch team took the concept of the GST2 token one step further and created a CHI gas token. This ERC20 token can be used in smart contracts to help reduce transaction fees on the Ethereum network. CHI is pegged to the Ethereum network’s gas price. When the price of gas is low you can mint this token and save it for later. When the price of gas is high you can use this token to reduce your gas fees on the Ethereum network.
How much you can save on gas fees depends on a few factors. Burning CHI tokens in a transaction could reduce your network transaction fees by half. In order to achieve this savings of reduced fees you need to obtain the CHI gas token when the price of gas is at least half of what it will be when using the gas token. For example if you bought or minted CHI at 30 gwei you would need to use it when gas prices are at a minimum of 60 gwei (a 2x ratio).
To mint CHI you can:
- Go to the 1inch contract on Ether Scan and call the mint function. https://etherscan.io/token/0x0000000000004946c0e9F43F4Dee607b0eF1fA1c#readContract
- Buy these tokens on the 1inch exchange aggregator
To use the minted tokens in your wallet you can:
- Implement the use of them programmatically in your smart contract
- Use the 1inch exchange aggregator. In settings click on the dragon and confirm the transaction in your wallet.
Next Review – Gas in Solidity smart contracts
