# Fixed Gas Price Mechanism

In a decentralized network where gas prices can often fluctuate based on demand and other factors, a fixed gas price can bring a layer of predictability. Let's assume the fixed gas price is set at 1€ and examine the mathematical models and efficiencies that come with it.

### Fixed Gas Price Model

#### Mathematical Model

The fixed gas price ($FGP$) is constant and equal to 1€. All transaction costs are thus calculated based on this:

**Inputs**

None (since it's a constant)

**Outputs**

$FGP$: Fixed Gas Price

**Code Example**

### Transaction Cost Efficiency

#### Mathematical Model

Normally, the cost of a transaction ($TC$) is calculated as follows:

**Inputs**

Number of Transactions: Total transactions made in the pool.

**Outputs**

$TC$: Total Transaction Cost

**Code Example**

### Pool-Specific Gas Offsetting

Pools can offset their transaction costs by having an associated gas-offset fund. Any yield generated by the pool can contribute to this fund.

#### Mathematical Model

Where $TC$ can be calculated as above.

**Inputs**

Gross Yield: The total yield generated by the pool before transaction costs.

**Outputs**

Net Yield: The yield remaining after transaction costs.

**Code Example**

### Advantages of Fixed Gas Price

**Predictability:**A fixed gas price eliminates the uncertainty in transaction costs, making it easier for users to anticipate their expenses.**Efficiency:**Pool operators can more precisely manage their resources knowing the exact gas costs, potentially leading to better capital efficiency.**Optimization:**A fixed gas price makes it easier to develop optimization strategies that capitalize on known, unchanging fees.

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