I’ve now been using DAOstack (Alchemy) for maybe 6 months & one thing that I still don’t get is the transaction costs for each vote or redemption I do. It seems to vary a lot, I’ve done my homework by researching the topic & I still cannot actually figure out exactly why this costs can vary so much (and get as high as 2 USD per transaction).
Ethereum Transaction Fee - ELI5 (Explain Like I’m Five)
Gas Limit = maximum amount of Gas that a user is willing to pay for performing this action or confirming a transaction (a minimum of 21,000).
Gas Price (GWEI) = amount of Gwei that the user is willing to spend on each unit of Gas.
Transaction Fee = Gas Limit * Gas Price
Good Practices for setting transaction fees
TL;DR: don’t touch the Gas Limit, if anything only lower the Gas Price
Gas limits are already defined on Ethereum depending on how much code is needed to be executed on the blockchain for a particular operation.
Rule of thumb: If you want to pay less and are lowering the gas limit below the recommended gas limit, then this will not work. Instead, try lowering the gas price.
1 Gwei = 0.000’000’001 Ether
At 1 Ether = 200 USD that’s 1 Gwei = 0.000’000’2 USD
Transaction Fee for a typical sending some ether
When “just” sending a some funds the recommended Gas Limit is between 20’000 and 60’000.
In that case, using 20 Gwei as gas price, estimated transaction fee is between 0.08 USD and 0.24 USD
0.000'000'2 * 20 * 20'000 = 0.08 0.000'000'2 * 20 * 60'000 = 0.24
Transaction Fee today (Sept 12 2019) for redeeming on DAOstack
In the example below, I’m trying to redeem a proposal & the Gas Limit is very high (759’778).
In that case, using 20 Gwei as gas price, the estimated transaction fee is 3.04 USD
0.000'000'2 * 20 * 759'778 = 3.039112 USD
Luckily, these estimations are often well above the reality & we end up spending only half of the budgeted transaction fee. Still, imo 1.5 USD transaction fee to redeem is a bit too high.
Transaction Fee today (Sept 12 2019) for voting on DAOstack
In the 2nd example below, I’m trying to vote on a proposal & the Gas Limit is very high (567’230).
In that case, using 20 Gwei as gas price, the estimated transaction fee is 2.27USD
0.000'000'2 * 20 * 567'230 = 2.26892 USD
Again, these estimations are often well above the reality & we end up spending only half of the budgeted transaction fee. Still, imo 1.13 USD transaction fee to vote is a much too high.
What am I missing?
I remember being able to vote on proposals & only pay 0.07 USD transaction fee for this action. So I’m probably missing something.