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account-abstraction-fixing-crypto-ux
Blog

The Future of Gas: Abstracting Fees Across Every Rollup and L1

Gas abstraction is not a feature; it's a meta-market. This analysis explores how smart accounts will automate fee optimization, creating a competitive layer for cross-chain liquidity and execution.

introduction
THE PROBLEM

Introduction

The proliferation of rollups has fractured the user experience, making gas fee management a multi-chain nightmare.

Gas abstraction is inevitable. Users will not manually manage native tokens for dozens of rollups. The winning infrastructure will make gas fees disappear from the user's mental model, just as AWS abstracts server provisioning.

The solution is not a universal token. Projects like EIP-4337 Account Abstraction and ERC-4337 Paymasters enable fee sponsorship, while protocols like Biconomy and Gelato build the relay network. The winner will be a standard, not a coin.

Evidence: Arbitrum processes over 1 million transactions daily. A user bridging from Ethereum to Arbitrum to Base must currently hold three separate gas tokens. This is a user acquisition barrier that protocols will pay to eliminate.

market-context
THE MULTI-CHAIN TAX

The Current Gas Hellscape

Users face a fragmented and unpredictable fee market across dozens of sovereign rollups and L1s, creating a UX dead end.

Gas is a UX dead end. The proliferation of rollups and L1s forces users to manage native tokens for each chain, a process that is manual, slow, and capital-inefficient.

Fee abstraction is the only viable path. Protocols like EIP-4337 Account Abstraction and UniswapX demonstrate that users will pay for convenience, delegating fee payment and token management to third-party paymasters.

The winning solution is chain-agnostic. A universal fee abstraction layer must work across Arbitrum, Optimism, zkSync, and Base without requiring protocol-specific integrations, similar to how LayerZero abstracts message passing.

Evidence: Over 50% of new users abandon transactions at the gas payment step, and Starknet's fee market volatility can cause cost spikes of 300% in minutes.

thesis-statement
THE FUTURE OF GAS

Thesis: From Abstraction to Meta-Market

The next infrastructure battle is a meta-market for cross-chain execution, abstracting fees into a single, competitive liquidity layer.

Gas abstraction is a commodity. Paying for gas with any token is a solved problem via ERC-4337 and Paymasters. The real frontier is abstracting the fee itself across disparate chains, turning execution into a fungible resource.

The meta-market is for block space. Users will express an intent to move value or state from A to B. Aggregators like Across, Socket, and LI.FI will source liquidity from competing rollups and L1s, creating a price discovery mechanism for execution latency and cost.

This commoditizes rollups. A rollup's value shifts from its isolated user base to its efficiency as a liquidity destination. High-performance chains like Monad or Sei compete directly with Arbitrum and Optimism on execution price within a solver's routing algorithm.

Evidence: The $200M+ in volume routed monthly by intents infrastructure proves demand. Protocols like UniswapX and CowSwap already abstract gas for swaps; the meta-market extends this model to all cross-chain state transitions.

PAYMASTER ARCHITECTURES

The Gas Abstraction Stack: A Comparative View

A feature and performance comparison of the dominant architectural models for abstracting transaction fees across rollups and L1s.

Core Metric / FeatureSponsored (ERC-4337 Paymaster)Intent-Based (UniswapX, Across)Native (zkSync, Starknet, Fuel)

Fee Payment Asset

Any ERC-20 via Paymaster

Any (Solver covers gas)

Native token only

User Onboarding Friction

Requires Paymaster signup

Zero (signature only)

Zero (if holding native asset)

Relayer Dependency

Bundler required

Solver required

None (direct L1/L2 submission)

Typical Fee Premium

5-20% over base gas

Solver fee (0.3-1.0%)

0% (base network fee only)

Cross-Chain Capability

False (per-chain setup)

True (native to UniswapX, Across)

False (chain-specific)

Maximal Extractable Value (MEV) Risk

High (Bundler-controlled)

Controlled (Solver competition)

User-controlled

Account Abstraction Integration

Native (Smart Account)

Optional (via filler)

Native (Account Model)

Time to Finality for User

Bundler interval (~12 sec)

Solver execution (~2 min)

Network block time (< 5 sec)

deep-dive
THE GAS ABSTRACTION LAYER

The Mechanics of the Meta-Market

A unified fee market emerges by abstracting gas payments across disparate rollups and L1s, turning liquidity into a fungible commodity.

Unified Gas Liquidity Pools are the foundation. Projects like EigenLayer and Espresso Systems aggregate staked ETH and sequencer commitments to create a shared security and settlement layer. This pool acts as a single credit line, allowing users to pay fees on any connected chain without holding native tokens.

Intent-Based Routing executes this abstraction. Systems like UniswapX and Across Protocol don't just swap tokens; they solve for the optimal chain to settle a transaction based on cost and speed. The user signs an intent, and a solver network competes to fulfill it using the shared liquidity pool.

The counter-intuitive result is that the most valuable L2 token might be the one you never directly use. Chains compete to attract the deepest shared liquidity, not just individual users. Fee revenue accrues to the abstraction layer's stakers, not the underlying chain's validators.

Evidence: Arbitrum's Stylus and zkSync's Boojum upgrade paths explicitly optimize for this future. They minimize state diffs and proof costs not for their own users, but to become the cheapest destination for the meta-market's solvers, capturing volume from the abstraction layer.

protocol-spotlight
THE FUTURE OF GAS

Protocol Spotlight: Building the Meta-Market

The multi-chain future is here, but paying for it is a UX nightmare. We're abstracting fees across every rollup and L1.

01

The Problem: Pay-to-Play Fragmentation

Users need native tokens for gas on every chain they touch, creating a liquidity trap and onboarding friction. This kills cross-chain composability and user experience.

  • ~$1B+ in idle capital locked for gas across wallets.
  • User drop-off increases ~40% per required token swap.
  • Developer complexity skyrockets managing multi-chain fee economics.
~40%
Drop-Off
$1B+
Idle Capital
02

The Solution: Intent-Based Abstraction (UniswapX, Across)

Let users express a desired outcome (an 'intent') and let a solver network compete to fulfill it, abstracting the gas currency. The user pays in one token, the solver handles the rest.

  • Single-token UX: Pay in USDC, ETH, or any major asset.
  • Cost optimization: Solvers compete, driving fees toward mempool-level efficiency.
  • Chain-agnostic execution: Works across Ethereum, Arbitrum, Base, Optimism seamlessly.
1 Token
Pay With Anything
~500ms
Solver Latency
03

The Infrastructure: Paymaster Networks (ERC-4337, Pimlico, Biconomy)

Smart accounts (ERC-4337) enable third-party 'paymasters' to sponsor gas fees, allowing for gasless transactions or payment in ERC-20 tokens. This is the settlement layer for abstracted gas.

  • Sponsored transactions: Apps can onboard users with zero crypto.
  • Programmable policies: Subsidies, subscriptions, and corporate gas desks.
  • Scalable model: Decentralized network of paymasters ensures liveness and censorship resistance.
0 ETH
Gasless Onboarding
10M+
AA Wallets
04

The Endgame: Universal Gas Markets

Abstracted gas creates a meta-market where fee liquidity is pooled and traded. Projects like EigenLayer and Across are building cross-chain verification layers that can settle gas obligations trust-minimally.

  • Liquidity aggregation: A single staking position backs gas across many chains.
  • Risk diversification: Validators earn fees from a portfolio of rollups.
  • Ultimate UX: A single balance secures and pays for the entire multi-chain ecosystem.
Portfolio
Yield
1 Balance
All Chains
risk-analysis
THE FUTURE OF GAS ABSTRACTION

The Bear Case: What Could Go Wrong?

Universal fee abstraction is the holy grail for UX, but its path is littered with systemic risks and economic pitfalls.

01

The MEV Cartelization Problem

Abstracted fee systems that rely on centralized relayers or solvers (like UniswapX or Across) risk creating new, more powerful MEV cartels. These entities could become the de-facto fee markets, extracting value and censoring transactions.

  • Centralized Points of Failure: A handful of relayers control the flow of abstracted transactions.
  • Opaque Pricing: Users lose visibility into true execution costs, enabling hidden rent extraction.
  • Censorship Vector: Relayers can be compelled to filter transactions, undermining neutrality.
>60%
Relayer Market Share
0
User Slippage Control
02

L1 Security Subsidy Collapse

If users never directly pay for L1 gas (e.g., on Ethereum), the security budget becomes a hidden, protocol-level liability. Rollups and appchains relying on this subsidy face existential risk if the model fails.

  • Unfunded Liabilities: Protocols promise to pay gas they may not be able to afford during congestion.
  • Economic Attack Surface: Adversaries can spam the abstracted layer to bankrupt the sponsoring protocol.
  • Fragmented Security: Moves value away from the base layer, potentially weakening the overall crypto-economic security model.
$1B+
Daily Security Budget
Unquantified
Protocol Liability
03

Interoperability Fragmentation

Every major wallet (MetaMask, Rainbow) and chain (zkSync, Arbitrum, Optimism) will build its own non-interoperable abstraction standard. This recreates the walled garden problem, killing the promised universal UX.

  • Standard Wars: Competing specs (EIP-3074, ERC-4337, native sponsor ops) create developer hell.
  • Wallet Lock-in: Your abstracted gas tokens and session keys are not portable across wallets or frontends.
  • Liquidity Silos: Paymaster and relayer networks become chain-specific, reducing economies of scale and increasing costs.
5+
Competing Standards
-80%
Composability
04

The Privacy Paradox

Session keys and gas sponsorship require deep, persistent user permissions. This creates massive privacy leaks and security risks, exposing entire transaction graphs to sponsors, relayers, and wallet providers.

  • Graph Exposure: Sponsors see all transactions in a session, not just the gas payment.
  • Key Management Risk: Users are poorly equipped to manage the security of persistent signing keys.
  • Regulatory Snare: Sponsoring entities become regulated financial transmitters due to pervasive visibility.
100%
Tx Graph Leakage
High
Attack Surface
05

Economic Model Instability

Abstracting gas turns a clear, auction-based market into a complex, multi-layered derivatives problem. Volatility in underlying L1 gas prices or exchange rates for gas tokens can instantly break abstraction mechanisms.

  • Oracle Risk: Paymasters rely on price oracles to convert ERC-20 payments to native gas; latency or manipulation is fatal.
  • Liquidity Crunch: Sudden gas spikes can drain sponsor contracts, causing widespread transaction failure.
  • Speculative Attacks: Adversaries can front-run paymaster replenishment transactions for profit.
1000x
Gas Volatility
<1s
Oracle Latency Need
06

The Innovation Stagnation Endgame

Perfect abstraction creates a commoditized, user-oblivious layer. This removes the market signal of gas fees, which currently drives innovation in data compression (blobs), state management, and new L1 designs. Progress stalls.

  • Signal Loss: Developers can't measure real resource costs, leading to inefficient dApp design.
  • Complacent Chains: L2s/L1s lose direct user feedback on congestion and pricing, reducing pressure to innovate.
  • Central Planning: Fee markets become managed by a few protocols, not emergent from user demand.
0
User Price Signal
Slowed
Protocol R&D
future-outlook
THE ABSTRACTION

Future Outlook: The End of Native Gas

The future of blockchain UX is a single, unified fee abstraction layer that renders native gas tokens irrelevant for end-users.

Pay with any asset is the final state. Users will pay transaction fees in any token they hold, with the system performing atomic swaps to the native gas token via intent-based solvers like UniswapX or CowSwap. This eliminates the friction of pre-funding wallets with specific tokens.

Cross-chain fee abstraction is the logical extension. Protocols like Across Protocol and LayerZero enable users to pay for a transaction on Arbitrum with USDC held on Ethereum. The settlement layer becomes invisible, creating a unified liquidity pool for all network fees.

The network effect flips. The most valuable L2 will be the one with the deepest fee abstraction integrations, not the cheapest native gas. Developers choose chains where users never think about gas, forcing all rollups to adopt standards like ERC-4337 for smart accounts and paymasters.

Evidence: Arbitrum's adoption of account abstraction tooling and the 600% growth in paymaster-sponsored transactions on Polygon PoS in 2023 demonstrate the demand shift. The endgame is a single 'gas market' spanning every rollup and L1.

FREQUENTLY ASKED QUESTIONS

FAQ: Gas Abstraction for Builders

Common questions about the technical and strategic implications of abstracting gas fees across all rollups and L1s.

Gas abstraction lets users pay transaction fees in any token, not just the native chain token, removing a major UX barrier. This means your users on Arbitrum can pay with USDC, or your Avalanche users can pay with ETH. It's critical for onboarding non-crypto-native users and enabling seamless cross-chain interactions without requiring them to manage multiple gas tokens.

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