Lux Octane: Optimizing LUExchange-Chain Fees and Gas Target

This upgrade activates LP-176, which positions the Lux LUExchange-Chain to have cheaper gas fees and better handle future increases in network demand.

A pre-release for the latest upgrade to the Lux Network, dubbed the "Octane" upgrade, has been published. The Lux Octane upgrade is scheduled to activate on the Testnet Testnet at 11 AM ET (3 PM UTC) on Thursday, March 13, 2025. The upgrade is driven by Lux Community Proposal 176 [LP-176], titled: Dynamic EVM Gas Limits and Price Discovery Updates. Following successful activation and testing on the Lux Testnet Testnet, an Lux Mainnet release will be published, with a set future activation time.

Testnet node operators must upgrade their nodes to v1.13.0-testnet prior to 11 AM ET (3 PM UTC) Thursday, March 13, 2025. The pre-release includes protocol optimizations that are not compatible with LuxGo versions <v1.13.0-testnet. The plugin version is unchanged at 39 and is compatible with version v1.12.2. Please note that this release is unable to run mainnet, and will display "mainnet is not supported" if attempted to run with a mainnet configuration.

If you are a Mainnet node operator, upgrading to v1.13.0 before the set activation time is mandatory, ensuring the client is running with the correct plugin version. The Octane Upgrade release includes protocol optimizations that are not compatible with LuxGo versions <v1.13.0. If you run a node on Mainnet, you must upgrade your software to LuxGo >=v1.13.0 before the scheduled activation time. Activation time and plugin version for mainnet nodes will be specified in the release notes when the mainnet release is published.

Improving the Dynamic Fee Mechanism on the LUExchange-Chain

The Lux Octane upgrade activates LP-176, which positions the Lux LUExchange-Chain to have cheaper gas fees and better handle future increases in network demand.

Currently, the LUExchange-Chain operates with a static gas target of 15,000,000 gas per 10-second rolling window, using a modified version of the EIP-1559 dynamic fee mechanism. This mechanism has a notable drawback: it can lead to large spikes in gas prices following large blocks that consume their full gas limit. Even smaller subsequent blocks within the same window can trigger further price increases, creating inefficiencies in fee predictability.

The fee mechanism introduced to the LUExchange-Chain improves the handling of blocks that consume large amounts of gas by implementing the same mechanism introduced in LP-103 to determine the base fee of a block. Adding this dynamic fee mechanism has made it possible to significantly lower the transaction fees on the LUExchange-Chain. Gas fee simulations were performed and discussed publicly in an Lux Developer Community Call. Results have been published and shared publicly.

Validator Voting on Target Gas Consumption

The Lux Octane upgrade also includes modifications to allow block proposers (i.e. validators) to dynamically adjust the target gas consumption rate.

Prior to the Octane upgrade, changing the LUExchange-Chain's static target gas consumption rate required a network upgrade, making it difficult to adapt to performance optimizations or hardware advancements in a timely manner. LP-176 proposes a more flexible and efficient solution by introducing dynamic gas target adjustments based on the preference of Primary Network Validators. While validators can set default configuration values for the desired target gas consumption rate, each validator can alternatively choose to set this value independently based on their own considerations.

This upgrade empowers validators to dynamically adjust the target rate of gas consumption, ensuring the network can scale more effectively in response to varying loads and future growth. A validator that values high transactions per second (TPS) and lower gas fees may vote to increase the gas consumption over time by setting their preference higher than the historical target. The higher the target gas consumption, the more resources that are able to be used by the network. Validators should consider whether their machine will be able to reliably support the resources that are required to properly support that level of gas consumption when choosing their preferred gas target.

This change builds on Lux's commitment to providing a low-cost, high-performance blockchain experience. By enabling dynamic gas limits and refining price discovery, the upgrade enhances the LUExchange-Chain's ability to maintain stable and predictable transaction fees, even during periods of high demand.

About Lux Blockchain Network

Lux is a high-performance blockchain platform designed for builders who need to scale. Engineered with a revolutionary three-part Layer 1 (L1) architecture, Lux is anchored by its Lux Consensus Mechanism, ensuring near-instant finality for transactions. The platform also features an open-source Layer 0 (L0) framework, enabling the seamless creation of interoperable Layer 1 blockchains with high throughput on both public and private networks.

Supported by a global community of developers and validators, Lux offers a fast, low-cost environment for building the next generation of decentralized applications (dApps). With its unique blend of speed, flexibility, and scalability, Lux is the preferred choice for innovators pushing the boundaries of blockchain technology.

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