Balancer Approves BAL Distribution to Offset Ethereum's Gas Costs
Balancer debuts program to provide relief to its users from high network fees.
- The Balancer community has just approved a proposal that will hand out BAL tokens to users.
- The stipend will help offset the gas costs of using the platform, as well as distribute the governance token.
- 7,500 BAL will be distributed each week until February 22.
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A recent Balancer Labs proposal will pay users 7,500 BAL per week to help cover their gas costs.
While users pay the gas cost in ETH, the reimbursements will be given out in BAL tokens and can be claimed by the users every week.
Free BAL to Cover Costs
A recent Balancer proposal that would pay users BAL tokens to cover their gas costs has just passed. Put forth by rabmarut, the proposal earned ~1.06 million BAL in support and ~253,610 against.
The program will run from Jan. 25 to Feb. 22 and hand out a total of 30,000 BAL, worth $589,200 at press time, to cover users’ gas costs (Ethereum network fees). If the program is successful in its endeavor, then it may be extended until Balancer launches its V2 upgrade.
Users who swap between WETH, WBTC, USDC, DAI, or BAL and trading directly via the interface are eligible for this reimbursement. On average, users can expect to save anywhere between 40-50%.
Since the gas costs incurred are denominated in ETH, and the reimbursement is made in BAL, the median price from CoinGecko’s BAL/ETH pair will be used for conversion.
The Balancer Ecosystem Fund will supply the reimbursements.
Reimbursements will be reduced if more than 7,500 BAL are needed per week, but this is unlikely, according to Balancer. The team has budgeted a surplus in case of an influx in the number of transactions, surges in gas fees, and other unforeseen costs.