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What is the Transaction Fee Token of the Japan Open Chain?

The Transaction Fee Token is used for all operations conducted on the Japan Open Chain blockchain, such as transfers, NFT issuance, and contract creation. These transactions are verified by Validators, and in exchange, a gas fee is necessary, which is paid using the Transaction Fee Token issued by Japan Open Chain.

This token is essential for every transaction conducted on the Japan Open Chain, making it a critical part of the ecosystem.

The mechanism of the transaction fee is determined by the protocol, similar to the Ethereum mainnet. There are 1 billion tokens already issued, which are allocated for the stable and ongoing development of the ecosystem.

The Japan Open Chain organization encourages third parties to build applications and dApps on Japan Open Chain. It plans to offer grants and funding to third-party application developers to enable the creation of various use cases on Japan Open Chain. Anyone interested in developing an application on the Japan Open Chain or those who already have a service or solution are welcome to get in touch.

Mechanism of Japan Open Chain Transaction Fees​

1. Gas​

Gas is used for payment of transactions on the Japan Open Chain blockchain. The amount of gas needed for each transaction varies depending on the complexity of the transaction. While a simple transfer of this token requires 21,000 gas, more complex transactions, such as those used in decentralized finance (DeFi), may need more than 1,000,000 gas.

Gas has a price, known as "gas price", expressed in gwei, where 1 token = 1 x 10^9 (1,000,000,000) gwei. If the gas price is 100 gwei, a transaction requiring 21,000 gas will cost 21,000 x 100 = 2,100,000 gwei (0.0021 tokens) in terms of gas fees.

2. Gas Price​

While the amount of gas required for a transaction is constant, the gas price fluctuates. Users set the gas price when they send a transaction (often done automatically by wallet software), and then the transaction is approved by validators. The validators are paid the transaction fee in the form of the gas fee.

＜Precautions＞​

  • These tokens are not guaranteed for redemption or cashing by the issuing entity, Japan Blockchain Foundation Co., Ltd. They are transaction fee tokens that can only be used for the purposes mentioned above.
  • An Initial Exchange Offering (IEO) on a Japanese crypto asset exchange is planned to allow Japanese residents to purchase these tokens. Until the IEO, residents in Japan cannot purchase them. For more details, please see here