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_native-eth-pc

Pros of using native ETH

  • Simplicity and familiarity for users: Native ETH is the default gas token, making it easier for users already in the Ethereum ecosystem to interact with the chain without needing to acquire or bridge a new token. This reduces onboarding friction and leverages existing wallets and tools.
  • Enhanced security and trust: By using ETH, the chain benefits from Ethereum's established security, decentralized, and market liquidity, which can build user confidence as ETH is a well-trusted asset.
  • Seamless interoperability: Intergrates directly with the broader Ethereum ecosystem, including DeFi protocols, exchanges, and bridges, simplifying development and reducing the need for additional custom integrations.
  • Default configuration: As the standard option for Arbitrum chains, it requires no additional setup for custom token configurations, speeding up deployment.

Cons of using native ETH

  • Price volatility: Gas fees are tied to ETH's market price, which can fluctuate significantly, leading to unpredictable transaction costs for users.
  • Limited customization: You cannot tailor tokenomics (e.g., inflation, rewards, or deflation mechanisms) to fit your chain's specific needs, missing opportunities to incentivize behaviors like staking or ecosystem participation.
  • Potential for higher costs in certain cases: For high-volume applications like gaming or social networks, ETH-based fees might be more expensive compared to a custom token designed for lower costs.
  • Less ecosystem control: Without a custom token, there's no ability to create value capture mechanisms or partnerships centered around a native asset, which could limit long-term growth and user engagement in niche ecosystems.