What are the best strategies to optimize gas fees in a DAOs smart contract?

1 Layer 2 solutions

Layer 2 solutions are protocols that run on top of a blockchain network, such as Ethereum, and provide faster, cheaper, and more scalable transactions and smart contracts. They achieve this by moving some of the computation and storage off the main chain, while still maintaining security and interoperability. Some examples of layer 2 solutions are rollups, sidechains, state channels, and plasma. By using layer 2 solutions, a DAO can reduce the gas fees of its smart contract significantly, as well as improve its performance and user experience.

2 Batching transactions

Batching transactions is a technique that combines multiple transactions into one, reducing the number of times the smart contract has to interact with the blockchain. This can save gas fees by avoiding redundant operations and overheads. For example, a DAO that distributes rewards to its members can batch the payments into one transaction, instead of sending them individually. Batching transactions can also reduce the risk of front-running, which is a malicious practice where someone tries to exploit the order of transactions on the blockchain.

3 Choosing the right gas price

Gas price is the amount of ether (ETH) that a user is willing to pay for each unit of gas, measured in gwei (1 gwei = 0.000000001 ETH). The higher the gas price, the faster the transaction or smart contract will be confirmed, but also the more expensive it will be. The lower the gas price, the slower the confirmation, but also the cheaper it will be. Choosing the right gas price depends on the urgency and importance of the transaction or smart contract. A DAO can use tools such as gas trackers, gas estimators, and gas limit calculators to find the optimal gas price for its smart contract, based on the current network conditions and the expected execution time.

4 Simplifying the contract code

The complexity of the smart contract code can also affect the gas fees, as more complex code requires more gas to execute. A DAO can simplify its smart contract code by following some best practices, such as avoiding loops, using libraries, minimizing storage operations, and optimizing calculations. Simplifying the contract code can not only reduce gas fees, but also improve readability, security, and maintainability. A DAO can use tools such as solc (Solidity compiler), Remix (online IDE), and Etherscan (blockchain explorer) to analyze and optimize its smart contract code.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?