KEY TAKEAWAYS
- The Avalanche Network is implementing the ‘Octane’ upgrade on the Fuji Testnet, focusing on dynamic EVM gas limits and price discovery.
- The upgrade introduces a dynamic fee mechanism to lower transaction fees and improve network demand handling.
- Dynamic gas target adjustments allow validators to scale the network effectively, enhancing adaptability and performance.
- The Octane upgrade aims to maintain stable transaction fees while supporting future growth of the Avalanche Network.
The Avalanche Network is set to implement its latest upgrade, known as the ‘Octane’ upgrade, on the Fuji Testnet. Scheduled for activation at 11 AM ET (3 PM UTC) on Thursday, March 13, 2025, this upgrade is driven by Avalanche Community Proposal 176 (ACP-176), which focuses on dynamic EVM gas limits and price discovery updates.
According to the pre-release details, node operators on the Fuji Testnet must upgrade their nodes to version v1.13.0-fuji before the activation time. The upgrade introduces protocol optimizations that are incompatible with AvalancheGo versions earlier than v1.13.0-fuji. Notably, this release cannot run on the mainnet and will display a ‘mainnet is not supported’ message if attempted with a mainnet configuration.
Enhancements to Gas Fee Mechanism
The Octane upgrade aims to enhance the Avalanche C-Chain by implementing a dynamic fee mechanism, which is expected to lower transaction fees and improve the network’s ability to handle increased demand. Currently, the C-Chain operates with a static gas target of 15,000,000 gas per 10-second rolling window, using a modified version of the EIP-1559 dynamic fee mechanism. This setup can lead to significant spikes in gas prices following large blocks that consume their full gas limit.
The new mechanism, introduced in ACP-176, builds on previous updates from ACP-103 to determine the base fee of a block. This change allows for more predictable and stable transaction fees, even during periods of high demand. Gas fee simulations have been conducted and discussed publicly, with results shared in an Avalanche Developer Community Call.
Dynamic Gas Target Adjustments
Another significant feature of the Octane upgrade is the introduction of dynamic gas target adjustments. Prior to this upgrade, changing the C-Chain’s static target gas consumption rate required a network upgrade, limiting adaptability to performance optimizations or hardware advancements. ACP-176 proposes a more flexible solution by allowing validators to dynamically adjust the target gas consumption rate based on their preferences.
This flexibility empowers validators to scale the network more effectively in response to varying loads and future growth. Validators can set default configuration values for the desired target gas consumption rate or choose to set this value independently. This change supports Avalanche’s commitment to providing a low-cost, high-performance blockchain experience.
The Octane upgrade is a significant step forward for the Avalanche Network, enhancing its ability to maintain stable and predictable transaction fees while accommodating future growth. More details about the upgrade can be found here.
Why This Matters: Impact, Industry Trends & Expert Insights
The Avalanche Network is preparing to implement the ‘Octane’ upgrade on the Fuji Testnet, introducing dynamic EVM gas limits and price discovery updates to enhance transaction fee stability and network scalability.
Recent industry reports indicate a notable increase in new users and trading volume on the Avalanche network. This aligns with the Octane upgrade’s goal of improving transaction efficiency and attracting more users.
A Trakx.io analysis highlights the critical role of gas fee mechanisms in maintaining network security and incentivizing validators. This supports the Octane upgrade’s focus on dynamic fee mechanisms to enhance network performance and user experience.
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