The on-chain gas futures proposal aims to make Ethereum transaction costs predictable for large users and enterprises by locking in gas prices in advance.
Summary
- Vitalik Buterin proposes an on-chain gas futures market that would allow users to purchase gas in advance at fixed prices for later use.
- The design extends EIP-1559 and provides price predictability for trade shows, rollups and enterprises without directly reducing gas costs.
- Futures prices would signal expected demand for Ethereum block space, creating new economic inputs for scaling and resource allocation.
Ethereum co-founder Vitalik Buterin has proposed a new on-chain gas futures market designed to address the unpredictability of transaction fees on the network, according to a recent announcement.
The proposal aims to allow users to purchase a certain amount of gas at a fixed price for future use, rather than paying variable fees based on real-time network congestion. According to the details of the proposal, the system would allow users to pre-determine transaction fees.
Under the proposed design, futures contracts would be traded directly on-chain, with prices reflecting market expectations of future network demand. When demand is expected to increase, futures prices will rise, and when demand is expected to decrease, prices will fall, creating a market-driven indicator of upcoming network activity, the proposal said.
The structure builds on the foundation laid by EIP-1559, which introduced Ethereum’s basic fee mechanism. Under the proposal, the futures market would expand that system rather than replace it.
The mechanism aims to provide cost certainty to high-volume network users, including exchanges, rollups, wallets and automation services. According to industry observers, these entities often face operational disruptions due to sudden spikes in gas rates.
For developers, the system would provide a stable environment for planning upgrades and managing deployments without exposure to price increases, the proposal indicates. The predictability could also remove barriers for companies integrating Ethereum into payment, verification or data processing workflows.
At the network level, the futures market would introduce economic signals for scaling decisions and resource allocation. Rising futures prices would indicate increasing demand for block space, while falling prices would indicate lower demand, according to the proposal.
The proposal is not intended to lower gas rates, but rather to make them more predictable by turning variable costs into manageable, forward-looking expenses, Buterin said. The change represents a shift in Ethereum’s economic framework, moving from short-term fee volatility to stable, sophisticated pricing mechanisms.
The proposal has not yet been formally submitted as an Ethereum improvement proposal and no timeline for implementation has been announced.
