Free lesson · On-chain markets

Transaction gas in a reporting currency

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Gas is a resource charge paid in the chain’s native asset. Dollar cost depends on both the paid gas price and native-asset value.

Use actual gas used, not the maximum gas limit, when accounting for a completed transaction. Under a simple execution-gas model multiply gas used by effective gas price.

This example excludes additional data-availability or layer-specific fees; record them as separate charges when applicable. A reverted transaction may still consume paid execution resources, so failed attempts belong in strategy costs.

Apply it in a strategy

• Compare on-chain routes in net dollars and include reverted attempts in research accounting.
• Record the input timestamp, executable quantity, currency and horizon. Reconcile the result with a cash-flow or state table.
• Stress this failure condition: Gas limit is not actual gas used, and execution gas may be only one part of total network fees.

Research deliverable

Build and explain a transaction gas in a reporting currency worksheet. Compare on-chain routes in net dollars and include reverted attempts in research accounting.

Evidence boundary: Synthetic arithmetic and scenarios illustrate mechanics. They are not historical returns, a paper replication, or evidence of an executable edge. Research sources and their access limitations are recorded at the end of this module.

# Python 3.10+; standard library unless NumPy is imported below.
# Inputs and outputs use the units defined in this lesson. Synthetic teaching example.
def gas_dollars(gas_used,gwei,native_usd):
    if min(gas_used,gwei,native_usd)<0: raise ValueError("Nonnegative gas inputs required")
    return gas_used*gwei*1e-9*native_usd

print(gas_dollars(150000,20,2000))