Gas and Burn Fee

In the Utility network, the execution of smart con- tracts consumes a certain amount of fuel (Gas) to measure the usage of computing resources. The design of Gas is borrowed from the scheme of Ethereum [4, 5], where the computational over- head of contract operators is measured so that the corresponding computing resources are allocated for the execution of smart contracts.

Each operator has a predefined Gas consump- tion value, which depends on the computing re- sources required for its execution. When a user submits a smart contract transaction, there needs to be enough Gas cost attached to the transaction to ensure smooth execution of the contract. The execution virtual machines (VMs) in the Utility network keep track of the Gas consumption while running the contract to ensure that it does not ex- ceed the limit provided by the user. Once the Gas consumption exceeds the limit, contract execution will be aborted to avoid malicious behavior such as infinite loops.

In addition, the Utility network introduces a Burn Fee mechanism, whereby a portion of each transaction and message transmission is burned and permanently removed from on-chain circula- tion. This design will also help reduce the inflation rate of tokens, increase the scarcity of tokens, and maintain a stable growth of token value. the exact value of Burn Fee can be adjusted according to the actual operation of the network to ensure the economic health of the network.

In summary, the Gas and Burn Fee mecha- nisms play an important role in the Utility network; Gas is used to measure the computing resources consumption of contract execution and ensure fair and efficient computational resource allocation in the network, while Burn Fee assists to reduce in- flation and increase the scarcity of tokens, thus maintaining their value. Together, these two mech- anisms above provide a sustainable economic foun- dation for the Utility network.