Gas fee token

Overview

When deploying a Buburuza Rollup chain, you can configure a custom ERC-20 token as the native gas token for that chain.

This allows transactions on your Buburuza network to use your own token (e.g., BUBU) instead of ETH for:

  • Paying transaction fees

  • Reimbursing the Batch Poster who posts compressed data to the parent chain (e.g., Ethereum or Arbitrum)

For example: A Buburuza Rollup chain could use BUBU as its native gas token while still paying ETH to post batches on Ethereum.

Why Use a Custom Gas Token?

Using a custom gas token gives chain owners more control over:

  • Token economics (using your project’s token for all gas fees)

  • User experience (users don’t need ETH to pay gas)

  • Brand integration (aligning fees with your ecosystem token)

However, it introduces additional configuration steps and exchange-rate dependencies, which must be handled carefully.

Requirements for the Custom Gas Token

The chosen ERC-20 token used as the native gas token must satisfy these conditions:

  • ✅ Must be a standard ERC-20 token

  • ✅ Transfers and approvals must occur directly via the token contract (no proxies or hooks)

  • ❌ Must not be rebasing or include transfer fees

  • ❌ Must not use transfer callbacks or revert if the sender and recipient are the same

Understanding the Fee Token Pricer

In Rollup mode, your Buburuza chain posts data to the parent chain (e.g., Ethereum).

  • The parent chain fee is paid in ETH.

  • The reimbursement for that cost is made in the child chain’s gas token (BUBU).

To calculate this reimbursement, the system needs a Fee Token Pricer — a smart contract that provides the exchange rate between:

The Fee Token Pricer ensures that the Batch Poster is reimbursed correctly in your gas token for the ETH they spent on L2.

Summary for Buburuza Chain

Purpose
Description

Goal

Use BUBU token as native gas token on Buburuza Rollup

Parent Chain

Ethereum or Arbitrum

Fee Token

BUBU (ERC-20)

Pricer Contract

Determines exchange rate between Arbitrum ETH ↔ BUBU

Deployment Tool

createERC20Rollup.ts

Key Benefit

Enables all gas fees and reimbursements in BUBU, maintaining ecosystem consistency

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