Gas Fees

Design Principles

The network charges a fee for writing credential metadata to the ledger. This includes:

  • Participant registration (writing institution's permissions to the chain)

  • Credential registration (initial issuance anchor)

  • Credential revocation (status updates)

These operations ensure that credentials remain discoverable, verifiable, and dynamically updatable over time. As such, they form a critical part of the network’s trust infrastructure.

Gas fees are designed as low-cost, high-frequency infrastructure primitives.

The pricing model is therefore optimized to:

  • Ensure frictionless issuance and revocation at scale

  • Prevent cost barriers to maintaining credential accuracy

  • Preserve predictability for enterprises and governments

  • Maintain native alignment with the $VLCT token economy

In particular, revocation must remain inexpensive. If revocation is costly, it is often avoided—undermining the reliability of the entire system.

Token-Native Pricing Model

Unlike verification fees, credential write operations are anchored in token units, not fiat.

At the reference point:

  • R0=0.10 USD

  • Base cost per operation: F0=0.1 $VLCT

This corresponds to:

  • $0.01 per credential registration

  • $0.01 per revocation

Price Evolution

As the token price increases, the fiat cost of credential writes grows sub-linearly using a dampening function:

Ct=(F0⋅Rt)⋅(Rt/R0)α

Where:

  • α=0.1 (strong dampening)

Equivalently, token cost evolves as:

Ft=F0⋅(Rt/R0)α

Pricing Scenarios (α = 0.1)

$VLCT Price
Multiple
Fiat Cost
Tokens Paid

$0.10

$0.01

0.10

$0.20

$0.011

0.11

$0.50

$0.013

0.12

$1.00

10×

$0.016

0.13

$2.00

20×

$0.019

0.15

$5.00

50×

$0.024

0.18

$10.00

100×

$0.032

0.20

$20.00

200×

$0.043

0.22

$50.00

500×

$0.068

0.27

$100.00

1000×

$0.100

0.32

Economic Implications

1. Extremely Low and Stable Fiat Costs

Even under a 1000× increase in token price, the cost of writing a credential grows only from:

  • $0.01 → ~$0.10

This ensures the network remains viable for:

  • large-scale issuance (millions of credentials)

  • frequent updates and revocations

  • public sector and enterprise adoption

2. Gradual Increase in Token-Denominated Cost

Unlike verification, token cost does not collapse — it grows slowly over time.

  • 0.10 → 0.32 tokens

This ensures:

  • continued token demand

  • meaningful economic participation

  • alignment with network growth

3. Decoupling Infrastructure from Speculation

The model ensures that core infrastructure operations are not exposed to token volatility.

  • Fiat costs remain predictable

  • Token costs adjust gradually

  • No sudden pricing shocks

Positioning Within the Network Economy

Credential writes are intentionally priced as:

“low-cost trust maintenance operations”

They are not designed to maximize value capture, but to ensure:

  • continuous data integrity

  • accurate credential lifecycle management

  • scalable network growth

Economic value is instead concentrated in:

  • verification events

  • staking demand

  • network usage at scale

Bottom Line

This model creates a system where:

  • writing and updating credentials remains cheap, predictable, and scalable

  • token demand grows gradually and sustainably

  • and the network can support global, high-frequency credential activity without friction

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