<aside> 📜 TABLE OF CONTENTS

• Quick Start
• Introduction
• Relevance of technology
• Synergy of best technologies
• Ecosystem
• Transactions
• SVM Token
• Integrations
• Tokenomics
• Roadmap </aside>

<aside> 💎 OUR COMMUNITY

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SVM Utility Token

The SVM token is central to facilitating all payments related to transactions within the Solana Virtual Machine ecosystem, including the fees paid to SolanaVM operators.

When users wish to execute a transaction, they initiate a request to a Solana Virtual Machine operator. Operators are tasked with two primary responsibilities:

1. Wrapping the SVM transaction into a Solana transaction: This allows the transaction to be executed iteratively on a Solana cluster, enhancing throughput and efficiency.
2. Financing the execution of each SVM transaction iteration: Operators cover the costs of every iteration required to complete the transaction.

This process is designed to streamline the payment and execution processes for SVM transactions, significantly enhancing the user experience by abstracting complex transaction mechanics.

For each iteration of an SVM transaction, the Solana Virtual Machine operator compensates the Solana validators with SOL tokens as a platform fee.

In exchange, Solana Virtual Machine users compensate the operator with SVM tokens. This payment covers several costs:

1. The Solana validation fee for processing the transaction,
2. The Solana Virtual Machine platform fee,
3. The operator’s commission for managing and executing the transaction.

Gas Fee Calculation in SolanaVM

The gas fee for transactions within the Solana Virtual Machine (SolanaVM) is determined by the formula:

Gas Fee = Gas Amount × Gas Price

1. Gas Price is influenced by two main factors:
   1. The SOL:SVM token ratio, which reflects the current exchange value between SOL and SVM tokens.
   2. The fee charged by the Proxy Operator for processing the transaction.
2. Gas Amount is based on the computational resources required to execute the transaction, as per Solana's operational guidelines.

It is important to note that the cost of the first transaction for a new account (which includes account setup) is typically higher than that of subsequent transactions. This initial cost is due to the additional resources necessary to establish and configure the account on the SolanaVM platform.