These smart contract vulnerabilities are called natural gas tokens, which are a way of sending transactions on a budget by "tagging" natural gas (running on the chain to calculate the cost of the purchase). This feature allows Ethereum users to buy low-cost transaction fees, store them, and then spend them when the fee price inevitably rises again.
Although the matter is still under discussion, some developers worry that tokenized natural gas may at some point become the "base price" for transaction fees and keep it permanently high.
With fees hitting record highs twice in the same week, developer Alexey Akhunov's June Ethereum improvement proposal (designed to urge the abolition of natural gas token (EIP) 2751) has received increasing attention.
Akhunov's napkin math in the Ethereum Research and Developer Messaging App shows that during the summer, approximately 1.5% to 20 Ethereum transactions use prepaid natural gas tokens. In addition, developer Ali Atiia added that many algorithmic traders have settings similar to Akhunov's analysis that cannot be captured. The trading pool is basically a one-sided order book in which you can bid on gas prices. Those orders placed in specific positions are to ensure that you can buy stocks bought on dips as in a normal two-way order. "
The core of the blockchain is the data settlement layer. Some data is more valuable than others, and maintaining data on the chain may also be a price that runners must bear.
Ethereum tries to alleviate this problem by providing Ether (ETH) to delete old contracts or information in contracts. Some people claim that they are now trying to reduce transaction costs.
Originally concocted by some scholars and developers of the crypto commodity research group Project Chicago, in 2017, tokenized natural gas is basically a small script that runs after sending a transaction. When the fee is low, the script will delete the previous data stored in the natural gas token smart contract.
The network will reward you for deleting old data. If the price of sending an Ethereum transaction is high enough, the tokenized gas (deleted data) can subsidize up to 50% of it. This comes in handy when the boom in decentralized finance (DeFi) pushes Ethereum fees to new records. In principle, GasToken can be used to reduce the gas cost of any transaction in DeFi or other applications. The creator Florian Tramèr told CoinDesk in an email.
Some people, such as Akhunov, warned that the result could be a permanent high-fee market. Developer Philippe Castonguay said that this just makes the charging market unimpeded. Indeed, there is a secondary market for natural gas tokens, such as the chi (CHI) token of 1.Inch, which was launched in May.
Of course, natural gas tokens are only a problem in the fee market. According to Ethgasstation, DeFi applications such as Uniswap or Chainlink are still one of the best fuel-consuming devices. Then there are stable currencies, such as Tether (USDT) or U.S. Dollar Coins (USDC), which are still gaining popularity.
Ethereum is an open-source, public, blockchain-based distributed computing platform and operating system featuring smart contract functionality.