Gas Sustainability

Automated Gas Management for Token Distribution

8-Bit Arcade uses an automated Treasury Gas Manager to ensure sustainable, zero-maintenance token distribution on Arbitrum.

Overview

The Challenge

Distributing tokens requires ETH for gas fees. Traditional approaches require manual wallet funding, which can lead to:

• Failed distributions if wallet runs out of ETH

• Manual monitoring and refilling

• Potential service disruptions

The Solution: Treasury Gas Manager

Automated smart contract system that:

• ✅ Monitors payout wallet ETH balance

• ✅ Automatically refills when balance drops below threshold

• ✅ Fully permissionless (anyone can trigger refill)

• ✅ Self-sustaining with minimal funding

How It Works

Architecture

┌─────────────────────┐
│  Treasury Contract  │
│   (Holds 1+ ETH)    │
└──────────┬──────────┘
           │
           │ Auto-refill when needed
           ↓
┌─────────────────────┐
│   Payout Wallet     │
│  (0.05-0.15 ETH)    │
└──────────┬──────────┘
           │
           │ Distributes rewards
           ↓
┌─────────────────────┐
│  Player Wallets     │
│  (Receive 8BIT)     │
└─────────────────────┘

Refill Process

1. Monitor: Check if payout wallet has < 0.05 ETH

2. Trigger: Firebase function calls ensureGasFunding()

3. Refill: Treasury sends 0.1 ETH to payout wallet

4. Distribute: Rewards distribution proceeds automatically

Integration Points

• Daily Rewards Function - Checks/refills before distributing 50K 8BIT daily

• Tournament Payouts - Ensures gas available for prize distributions

• Emergency Funding - Admin can manually trigger refill if needed

Cost Analysis

Arbitrum Gas Costs

Operation	Cost (USD)	Frequency
Daily reward distribution	$0.02-0.04	Daily
Tournament payout	$0.01-0.02	Per tournament
Treasury refill	$0.01	~Every 3-4 days

Long-Term Sustainability

Daily Operations:

• 50,000 8BIT distributed daily (free rewards)

• ~$0.04/day in gas costs

• $15/year for 18M 8BIT distributed annually

Tournament Operations:

• Additional $0.01-0.02 per tournament

• ~$5-10/month for all tournaments

Total Annual Cost: ~$75-100

Treasury Funding

Deposit	Duration	Cost/Day
1 ETH	2-3 years	$0.04
2 ETH	4-6 years	$0.04
5 ETH	10-15 years	$0.04

Key Insight: A single 1 ETH deposit ($3,000-$4,000) funds automated operations for 2-3 years.

Economic Impact

On Token Distribution

• Enables Full Automation - 2.5M monthly emissions fully automated

• Zero Manual Intervention - No human required to distribute rewards

• Guaranteed Reliability - Players always receive rewards on time

• Minimal Operating Cost - $75/year to distribute 30M 8BIT/year

Cost vs. Emissions Value

At different market caps:

Market Cap	8BIT Price	Annual Emissions Value	Annual Gas Cost	% of Emissions
$500K	$0.001	$30,000	$75	0.25%
$1M	$0.002	$60,000	$75	0.125%
$5M	$0.01	$300,000	$75	0.025%
$10M	$0.02	$600,000	$75	0.0125%

Conclusion: Gas costs are negligible compared to token distribution value.

Tokenomics Integration

No Change to Token Supply

• Treasury uses ETH, not 8BIT tokens

• Token supply remains 500M total

• Emissions schedule unchanged (2.5M/month for 5 years)

Enables Promised Features

The Treasury makes these tokenomics features possible:

1. Automatic Daily Rewards - 50K 8BIT distributed daily at 00:00 UTC

2. Tournament Payouts - Instant prize distribution after competitions

3. Zero Downtime - Continuous operation without manual funding

4. 5-Year Distribution - Sustainable automation for entire emissions period

Comparison: Manual vs. Automated

Without Treasury (Manual Funding):

• ❌ Requires monitoring wallet balance

• ❌ Risk of failed distributions

• ❌ Manual intervention needed

• ❌ Potential service disruptions

With Treasury (Automated):

• ✅ Self-sustaining for 2-3 years per ETH

• ✅ Zero manual intervention

• ✅ Guaranteed reliability

• ✅ Professional operation

Smart Contract Details

Key Configuration

minimumThreshold = 0.05 ETH   // Refill trigger
refillAmount = 0.1 ETH        // Amount sent per refill
payoutWallet = 0x...          // Backend wallet address

Security Features

• Owner Controls - Only owner can change settings

• ReentrancyGuard - Prevents exploit attacks

• Permissionless Refill - Anyone can trigger (treasury pays)

• Balance Checks - Ensures sufficient funds before refill

Monitoring & Transparency

On-Chain Tracking

All Treasury operations are fully transparent:

• Treasury Balance - Public view function

• Refill Events - Emitted on-chain

• Payout History - All distributions verifiable

• Gas Costs - Visible on Arbiscan

Real-Time Status

Players and investors can monitor:

Treasury Status:
├─ Treasury Balance: 0.95 ETH
├─ Payout Balance: 0.12 ETH
├─ Needs Refill: No
├─ Refills Available: ~9 more
└─ Estimated Runway: 27 days

Funding & Maintenance

Initial Funding

1. Deploy Treasury contract

2. Fund with 1-2 ETH

3. Set payout wallet address

4. System operates automatically

Ongoing Maintenance

• Year 1: Add 0.5-1 ETH if needed

• Year 2+: Refill treasury as required

• Monitoring: Automated alerts when < 0.2 ETH remaining

Cost Sources

Treasury can be funded from:

• Treasury allocation from token sale proceeds

• Tournament entry fee revenue (USDC → ETH)

• Platform fees

• Community donations

Future Enhancements

Planned Improvements

• Auto-Swap Integration - Convert USDC fees to ETH automatically

• Multi-Wallet Support - Support multiple payout wallets

• Dynamic Thresholds - Adjust based on gas prices

• Cross-Chain - Extend to other L2s if needed

Fully Self-Sustaining Model

Long-term vision:

1. Tournament fees generate USDC revenue

2. Auto-swap 10% of fees to ETH

3. Deposit ETH into Treasury

4. System becomes 100% self-funding

Investment Implications

For Token Holders

• ✅ Guaranteed automated distributions

• ✅ No risk of missed rewards

• ✅ Professional infrastructure

• ✅ Sustainable long-term operation

For Platform Growth

• ✅ Scales with adoption

• ✅ No operational bottlenecks

• ✅ Minimal overhead costs

• ✅ Focus on growth, not manual operations

Summary

The Treasury Gas Manager is critical infrastructure that makes 8-Bit Arcade's tokenomics actually work:

Metric	Value
Cost	~$75/year
Benefit	30M 8BIT distributed annually
Reliability	100% automated
Sustainability	2-3 years per 1 ETH
Impact on Tokenomics	Zero (uses ETH, not 8BIT)

Bottom Line: Minimal cost enables maximum automation and reliability for the entire token distribution system.

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The Treasury Gas Manager is deployed on Arbitrum and fully operational. All operations are transparent and verifiable on-chain.