Add Custom Gas Token
Learn how to design, implement, and integrate custom tokens in your Syndicate appchain.
Syndicate appchains give you the flexibility to choose which token is used to pay transaction fees ("gas"). Instead of being limited to ETH, you can select a standard ERC-20, a custom implementation, or even a bridged asset as your chain's gas token. This unlocks new possibilities for your project's economics, user experience, and community engagement.
You can choose between:
| Option | Description | Best For |
|---|---|---|
| ETH | Standard ETH for gas payments | Simplicity and compatibility |
| Custom Token | Your own ERC-20 as native currency | Community economics and custom use cases |
By default, your Syndicate appchain will use a custom ERC-20 token as the native gas token. This approach is significantly more cost-effective: initializing a custom token costs around $0.01, compared to over $1,000 for ETH (due to bridge initialization requirements).
Why Use a Custom Gas Token?
- Lower Costs: Custom gas tokens can dramatically reduce transaction fees. For example, Degen Chain uses its own DEGEN token as gas, enabling ultra-low fees—sometimes a tiny fraction of L2 costs.
- Community Alignment: If your project already has a native token and community, using it as gas can deepen engagement and make onboarding easier (users can deposit directly from L2, skipping expensive L1 transactions).
- Economic Flexibility: Custom gas tokens let you design incentives, subsidize certain users or apps, and shape your ecosystem's growth.
Key Considerations
- Token Choice is Sticky: Switching between ETH and a custom gas token after launch is complex—choose carefully.
- Tokenomics: Decide if your gas token is inflationary, deflationary, or fixed supply.
- Upgradability & Governance: Plan for how your token and fee model can evolve over time.
- Compatibility: Ensure your chosen token works with your fee model and infrastructure.