How Gas Fees Work on Velo's Nova Blockchain

What Are Gas Fees on Nova?

• Velo's Nova blockchain is EVM-compatible and requires gas to process transactions and smart contracts, similar to many other blockchains. However, there are crucial differences in how these gas fees operate:

1. Gas Token: NOVA

• The Nova chain uses NOVA, a dedicated secondary token, as the unit for gas fees.
• NOVA is distinct from the primary VELO token.
• Importantly, NOVA does not have monetary value: it is not traded on exchanges or meant as a speculative asset12.

2. Minimal or No Monetary Cost to Users

• Nova was specifically designed to eliminate prohibitive gas fees for users. This is a key selling point compared to predecessors like BSC, where fees, though low, could still be a hurdle1.
• NOVA tokens are generally distributed for free, often via faucets, making it easy for users to interact with the Nova blockchain without worrying about the cost of gas the way they would on other networks1.

3. No Impact on Financial Metrics

• Since NOVA is not a currency and has no USD value, Nova’s gas fees do not figure into financial reporting or fee trend analyses at the protocol level32.
• Fee and activity reports for the Velo ecosystem focus on BNB Smart Chain (BSC), not Nova, because fees collected in NOVA do not influence Velo's revenue or overall fee metrics32.

Summary Table

Additional Context

• Universe, Velo's hybrid DEX, uses Nova for internal operations, meaning most routine user transactions on Universe accrue no monetary gas cost when performed on Nova312.
• The primary rationale for this structure is to make blockchain and DeFi usable for mainstream cross-border remittances and consumer loyalty programs, where low or no user cost is essential1.