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Gas Optimization
Last updated: August 2025

Gas Tokens and Refund Optimizations: GST2, CHI, and Modern Alternatives 2025

Gas tokens revolutionized Ethereum cost optimization by exploiting gas refund mechanisms. While legacy solutions like GST2 and CHI tokens used SELFDESTRUCT operations, modern alternatives adapt to EIP-3298 changes. This comprehensive guide covers gas price arbitrage, storage refund optimization, and cutting-edge techniques for arbitrage cost reduction in 2025.

Legacy Gas Token Mechanisms: GST2 & CHI

GST2 Contract Destruction

Mints minimal contracts and destroys them via SELFDESTRUCT for 24,000 gas refunds. Efficiency ratio requires 2.14x gas price differential for profitability.

CHI Token Optimizations

10% more efficient than GST2 through CREATE2 operations and address mining. Uses vanity addresses to reduce contract bytecode size by 1 byte.

Gas Price Arbitrage Strategy

Mint tokens at low gas prices (1-5 gwei) and burn during high congestion (50+ gwei). Optimal efficiency requires 3-4x price differential.

Technical Implementation & Smart Contract Mechanics

1

Dummy Contract Creation

Deploy minimal contracts with CREATE opcode. Each contract contains only authorization check and SELFDESTRUCT instruction.

2

Address Prediction Algorithm

Calculate deterministic contract addresses using nonce-based formula. Enables efficient batch destruction without storage lookups.

3

Batch Destruction Process

Execute multiple SELFDESTRUCT operations in single transaction. Gas refunds limited to 50% of total transaction cost.

EIP-3298 Impact & Modern Gas Optimization

SELFDESTRUCT Deprecation

EIP-3298 removes gas refunds and SELFDESTRUCT functionality. Legacy gas tokens become obsolete post-London upgrade implementation.

Layer 2 Migration Strategies

Polygon, Arbitrum, and Optimism offer native low-cost transactions. Eliminate gas token complexity through L2 arbitrage execution.

MEV-Boost & Private Pools

Use MEV-Boost and Flashbots Protect for guaranteed inclusion at predictable costs. Bypass public mempool gas auction dynamics.

Gas Token Profitability & Efficiency Analysis

Minimum Efficiency Threshold: Gas tokens require 1.5x efficiency ratio for meaningful savings. Target 3-4x gas price differential for optimal results.

Transaction Size Requirements: Large transactions (500k+ gas) benefit most from gas token usage due to 50% refund cap limitations.

Market Timing Strategy: Monitor network congestion patterns and mint during low activity periods (weekends, early morning UTC).

Modern Cost Reduction Alternatives

Smart Contract Optimization

  • • Calldata compression techniques
  • • Storage slot packing
  • • Assembly optimization
  • • Function selector mining

Infrastructure Solutions

  • • Layer 2 execution environments
  • • State channels for frequent trades
  • • Private mempool access
  • • Meta-transaction frameworks

Optimize Your Trading Costs

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Conclusion

While legacy gas tokens like GST2 and CHI provided significant cost savings during Ethereum's high-fee periods, the evolving landscape demands new optimization strategies. With EIP-3298 removing gas refunds and the rise of Layer 2 solutions, modern traders must adapt to infrastructure-based cost reduction rather than protocol exploitation. The future of gas optimization lies in smart contract efficiency, Layer 2 migration, and strategic use of MEV-protected execution environments.

Tags

Gas Tokens GST2 CHI Token Gas Refunds SELFDESTRUCT EIP-3298 Gas Optimization

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