Now that we have the boring stuff out of the way. (Read the [previous post](https://hackmd.io/@xGhoul0x/S1vbNg5Y2/https%3A%2F%2Fhackmd.io%2Fx6l7dZCpRXSgDRe_sx286g) for stats on our launch. Lets get to the more interesting stuff. Big changes are on the way. ## Mainnet Ethereum is Expensive As a rebasing token, we have quite a few contract interactions that go beyond the scope of a normal token. Every day we multiple times: - Update the Oracle with the average network price. - Call rebase() - Sync the rebase between all liquidity pools This creates a trade-off for us. > The more we rebase the closer we can keep to the target price. But, the more we rebase the higher it costs. This is most felt on Ethereum mainnet when even at times of low gas, the cost is an order of magnitude more than Arbitrum and Optimism. All told, running the rebase and Oracle bots costs us many 1000s in USD per month to run. ## We can be more stable Beyond that, we would like to rebase more than we have. The past 30 days have been volatile for FIRE, the primary bottleneck to smoothing this line is rebasing more often. ![](https://hackmd.io/_uploads/ryqRX-jtn.png) To rebase twice as often would cost 10,000s USD per month on Ethereum. And in full transparency, we don't have the revenue as a protocol to support that now. So what do we do next? ## Temporarily, Pausing Rebasing on Ethereum. Until we have the resources to support it, we will pause rebasing on Mainnet. #### What does this mean specifically? - The price of Fire on Ethereum will free float and not rebase towards 1 Cent - We will pull liquidity from the pool and move it to Arbitrum - We won't use the price of FIRE on Ethereum in our oracle calculations when rebasing on Arbitrum and Optimism #### What does this mean for FIRE holders on Ethereum? - Your relative holdings in FIRE will remain the same. The percentage of FIRE held won't change. - As soon as rebasing is re-enabled on Mainnet we will reach price parity again. - Arbitrage between Mainnet and the L2s is likely to lag. (This won't matter if you hold in the long run.) - There won't be an opportunity to earn veWFIRE on mainnet at this time. Temporarily, until we have the resources to support it, we will pause rebasing on Mainnet. I understand this is not ideal for FIRE holders who have already bought on Ethereum. But, this is a necessary step at this time to manage protocol expenses and keep the price of FIRE stable. I appreciate your patience as we build up revenues until we can afford Ethereum's high gas costs. ## Why Arbitrum? Most of our users are on Arbitrum, and we have some announcements lined up, so stay tuned!