Avalanche Octane update goes live on mainnet, slashes transaction fees significantly

• The upcoming Avalanche Octane update, set to go live on the mainnet this Thursday, brings a dynamic fee structure to the C-Chain.
• This system lowers transaction costs during periods of high network traffic by adjusting fees in real time, as outlined in ACP-176.
• Recent data indicates a 77% decline in hourly generated fees and a 30% reduction in average transaction fees, showcasing enhanced efficiency amid increased transaction volumes.

The Avalanche Octane update goes live on the mainnet this Thursday, introducing a dynamic fee structure to the C-Chain. This advancement is designed to lower transaction expenses during busy network times by dynamically adjusting fees in real-time, in accordance with ACP-176. Current data demonstrates a 77% decrease in hourly fees generated and a 30% drop in average transaction costs, highlighting improved operational efficiency during busy periods.

Avalanche’s new update enhances the dynamic fee structure of the C-Chain

The Octane update, set to launch this Thursday, prepares the Avalanche C-Chain for reduced gas fees and improved capacity to handle future spikes in network demand.

Following successful tests on the Avalanche Fuji Testnet, the Octane upgrade is now available on the mainnet. This upgrade is a result of the Avalanche Community Proposal 176 (ACP-176).

According to a recent blog post, “The implementation of this dynamic fee structure has considerably reduced transaction fees on the C-Chain.” post. 

The post elaborates that this upgrade enables validators to dynamically modify the target rate for gas consumption, allowing the network to scale more efficiently in response to varying loads and future growth.

Data shared by Avalanche’s official X account indicates a 77% reduction in hourly fees from 29.9 to 6.8 and a 30% drop in average transaction fees from 0.0001 to 0.00007, reflecting enhanced efficiency during high transaction volumes.

Additionally, swapping fees have been drastically lowered by 97% from 0.003 to 0.0001, and fees for transferring 1,000 AVAX have fallen by 99.5% from 0.04 to 0.00021.

This update signals a positive outlook for Avalanche, as lower fees generally make the blockchain more attractive for developers and users alike. Furthermore, reduced transaction costs stimulate greater network activity, which boosts the demand for AVAX through gas fees and staking, while increasing its overall utility and promoting broader adoption within the ecosystem.