Zerion, a cryptocurrency wallet, is developing the ZERO Network, a Layer 2 network that it hopes to debut in late Q2 or early Q3.
The network’s unique selling proposition is that it will be free to use. It will be an Ethereum-based rollup. The project aims to enhance the user experience through fee subsidies.
“Ultimately we realized that for the end user, the fees should not exist,” said Evgeny Yurtaev, co-founder of Zerion. He claimed that anyone new to the blockchain ecosystem finds the concept of paying fees startling and strange.
The key question is how providing free transactions will pan out economically. Zerion asserts that when transaction fees are improved, the cost of subsidizing the costs will eventually decrease for the company. Yurtaev cited the recent arrival of blobs, which have resulted in a significant decrease in Layer 2 network fees.
“Our current assumption is that, with tens of thousands of dollars, we can sponsor millions of transactions and over the year, we’re expecting that to go even lower,” Yurtaev stated.
Zerion expects its network to raise wallet awareness and generate more revenue. New users might pay fees for swaps or premium services, offsetting rollup costs.
Yurtaev said, “You can send some USDC to your friend for free and your friend is able to immediately start transacting on all of the different dapps that will be available on the Zero Network. In turn, all of that should create the network effect for the wallet itself.”
Zerion expects spam risks with a network offering free transactions. It plans to scrutinize wallet and transaction factors to combat spam. If a transaction is flagged as spam, Zerion won’t subsidize the fee but allows users to pay themselves.
Zerion anticipates spam risks on a network where transactions are free. To combat spam, it will check transactions. If reported, users are responsible for paying costs.
Also Read: OKX-Backed Orbiter Finance Launches Own Layer 2 Network
