Rollup Pricing Models

Read our work and try to understand as much of it and come up with as many questions/ideas as possible. (there is also a slide inside the link)

Please answer the following in a docx.
1) Teach me what you have learned.
2) Let me know where you are confused / stuck (the more specific, the better).
3) List all the sources you used. (With the link and what you learned from each link)

Requirements: 2 pages, single line, 12 font

Answer preview

Some project areas are confusing and require further exploration to achieve the desired outcomes. First, it was explained that the basic principle that informs the design of the roll-up price models is the incentives for the operator and the user to operate and use the L2. However, the basic price model function F(X)= G(X) *K*(fb+ft) explains the paradigm to include a premium in an account of the variance of the base fee.

What factors or conditions influence the input of the premium in the price model? Even though an operator can include various services, and hence the user could pay an extra charge to utilize these services, what conditions identify an overcharge? Even though users are motivated to scale the transactions from a cost perspective, the premium charge could be an incentive to explore more needed transactions.

Moreover, the operator intends to make money, and the inclusion of the premium could make up for significant variances (Off-chain Labs Dev Center, n.d.). How does this affect how the operator intends the user to explore multiple transactions without compromising on the income? The price model functions show that in most instances, the premium value seeks to approach 1, prompting the need to increase the fee.

Finally, on the roll-up price models, the criteria used to select the developed models over the alternative practical models in the market is unclear. This is despite the clarification on the exposition of the compensation’s dimensions for all the 3 protocols that come from user payments. Moreover, the functions demonstrate that the price models for Arbitrum, optimism, and ZkSync are similar to the basic price models. Hence the unique aspects of the current models are unclear in terms of the model.

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Rollup Pricing Models