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Zerion wallet launches L2 public chain ZERO Network, how will it achieve zero transaction fees?

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Zerion wallet launches L2 public chain ZERO Network, how will it achieve zero transaction fees?

The Zerion wallet will launch the zero-fee public chain ZERO Network and is planning to release it by the end of the second quarter or the beginning of the third quarter of this year.

Zerion Public Chain ZERO Network

According to The Block report, the well-known all-in-one wallet Zerion is developing its own Rollup-based layer 2 public chain named ZERO Network, as the name suggests, ZERO means it will be a public chain with zero transaction fees.

Despite Ethereum completing the London hard fork upgrade, reducing fees drastically on various L2 chains, for example, the cost on the Optimism mainnet has dropped below 0.001 USD, but this still indicates that fees will still exist on L2.

Ethereum L2 fees drop sharply, Optimism below 0.001 USD, Base almost zero USD

Zerion plans to achieve zero transaction fees through subsidies to further enhance user experience.

Zerion co-founder Evgeny Yurtaev mentioned:

We eventually realized that fees should not exist for end-users, and paying on-chain fees is shocking and unfamiliar to anyone entering the blockchain space. Our current assumption is that with tens of thousands of dollars, we can sponsor millions of transactions, and in the first year, we expect the subsidy figure to be even lower.

Zerion: Expected Economic Effects Greater Than Subsidizing Fees

Zerion expects to have its own L2 network, which will further increase the popularity of its wallet and bring in additional revenue, ultimately proving that subsidizing fees is reasonable.

Evgeny Yurtaev stated:

This can attract new wallet users, who may eventually pay fees through other applications or register for a premium service. For example, you can send some USDC to a friend for free, and your friend can start interacting with all kinds of Dapps on the ZERO Network, which should create network effects for the wallet itself.

However, free services often attract spam, and Zerion will inspect user wallets and transaction-related interactions on the ZERO Network after its official launch. When identified as spam, fees will not be subsidized, and users will have to pay on their own.

Zerion also plans to collaborate with dapp developers to share the costs of subsidizing transactions. Dapps will be able to pay user fees on the network.

When asked about technical specifications such as EVM compatibility and which Dapps they will cooperate with on subsidizing fees in the future, Zerion declined to comment.