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Governance & Staking

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Who Are Gas Markets For?

ETHGas touches everyone on the blockchain whether they choose to interact directly with us or not. From:

  • The Validators who secure the network and earn yields, to

  • The Users and traders who pay for transactions, to

  • The Protocols that require gas for core functionality, to

  • The Developers that create these dAPPs, to

  • The Wallets that enable Users to interface with dApps,

  • And many more...

As the fabric that powers blockchains, and with billions of dollars flowing through the pipeline each year, it's important that Gas, and ETHGas by extension create a system that enables users to participate in both the product roadmap and economic design. At the core of blockchains, Validators want higher yields, and Users want lower fees. Protocols, Developers, and Wallets, altogether would like to remove Gas from the user experience (e.g. account abstraction).

While some of these interests are aligned, some aren't - how do we pay validators more with traders paying less? It's nuanced.

An array of products addresses this to some degree on the micro level - while we still have Regular Gas, we now have High Octane (preconfs, state guarantees), as well as Bulk Purchases (blocks). Such product segmentation is driven from the demand-side of the market (i.e. users of gas), vs the supply side (i.e. Validators) with products split by compute, storage, or other.

On the macro level, our token is designed to embody these more nuanced, multifaceted or multidimensional relationships aligning the future existence of both ETHGas with that of its users.

The ETHGas token $GASS is a Governance token that enables the community to participate in ETHGas' future product roadmap and tailor the economic incentives to each party accordingly. For more on the product roadmap, see the Vision section. For more on how tokens are used to align incentives, read on.

What is Governance For?

The $GASS token plays a central role in the decentralized governance of the ETHGas ecosystem. With $3-4 billion dollars flowing through the Ethereum Gas markets each year, it's primary function is to enable holders to participate in the future of the protocol through proposal creation, voting, and delegated decision-making.

1. On-Chain Governance

Holders of $GASS, can stake their tokens and earn $veGASS, where $veGASS can be used to vote on governance proposals, which may include:

  • Adjusting core protocol parameters (e.g. fees, incentives, collateral factors)

  • Adjusting the buy-back & burn of our token with protocol fees

  • Approving smart contract upgrades or migrations

  • Allocating funds from the protocol treasury

  • Integrating new chains, products, or external partnerships

This ensures that critical decisions affecting the protocol are made in a transparent and decentralized manner.

2. Delegation & Liquid Democracy

To enhance scalability and decision quality, $veGASS supports vote delegation. Token holders can delegate their voting power to trusted individuals, organizations, or professional delegates, while retaining full ownership of their tokens. This liquid democracy model encourages broad participation without requiring every holder to vote on every proposal.

3. Staking & Governance Weight

To align governance influence with longer-term commitment, voting power can be amplified by staking or locking $GASS for a defined period. Longer lock durations or higher stake amounts confere proportionately greater voting power. This mechanism incentivizes holders to take a long-term view when participating in governance decisions.

4. Treasury & Ecosystem Development

The protocol's treasury is governed by $veGASS holders. Governance proposals may allocate treasury funds to ecosystem initiatives, development grants, liqudiity incentives, or strategic partnerships. This community-drivne resource allocation enables sustainable growth while maintaining decentralized control.

5. Upgrade & Emergency Powers

$veGASS governance serves as the final authority over protocol upgrades, parameter changes, and emergency actions. While operational responsibilities may be delegated to specialized committees or smart contracts, ultimate decision-making power rests with the governance process.

Importantly, the $GASS token and associated $veGASS governance tokens do not represent ownership in the protocol, claims on revenue, or any financial rights. Its utility is strictly limited to participating in the decentralized governance of the ETHGas ecosystem.

How to Stake with ETHGas

Following our Token Generation Event (TGE), you will be able to stake with ETHGas by: (still TBD)

  • Visiting [ staking.ethgas.com ]

  • Input the amount then click "Stake Now"

  • Confirm the transaction in your wallet (e.g. MetaMask) for ERC20 token approval

  • Confirm another transaction in your wallet (e.g. MetaMask) for depositing ERC20 tokens into the ETHGas staking contract