As Bitcoin DeFi enters its true scaling phase, one technical challenge stands out as a fundamental barrier — gas fees. Every on-chain interaction, whether initiated by a user or a developer, can consume up to 40–70% of total transaction costs. In a system striving for mass adoption, that inefficiency is unacceptable. That’s why Hemi Network has invested heavily in its Gas Optimization Layer, one of the core innovations in the HVM (Hemi Virtual Machine) architecture.
As of October 2025, the average cost for a swap or staking transaction on Hemi is around 0.000021 BTC (~$1.45) — 62% cheaper than Stacks and over 75% lower than most Bitcoin sidechains. This reduction isn’t achieved through superficial adjustments; it’s the result of deep structural optimization within Hemi’s virtual machine and transaction compression framework.
At the heart of this efficiency lies Hemi GasNet, a Parallel Execution Module introduced in HVM version 1.4.2 “Joule” (September 2025). Unlike traditional blockchain models that process transactions sequentially within each block, GasNet classifies similar transactions — such as staking, transfers, and swaps — into gas clusters, which are then executed concurrently across multiple cores. This approach allows Hemi to process an average of 12,800 transactions per second without raising gas consumption per block.
According to the HemiScan Data Report (Q3 2025):
Average transaction fee: 0.000018–0.000023 BTC
Average confirmation time: 0.85 seconds
Gas usage reduced by 58.2% QoQfollowing the release of Compression Layer 2.0
Average daily transaction volume:1.7 million (+240% from Q1 2025)
However, Hemi’s gas optimization isn’t just about lowering fees for users — it’s also about reducing operational costs for developers. In the latest update, Hemi DevKit v2.1 (October 2025) introduces Static Gas Mode, allowing developers to accurately estimate transaction costs before deployment. This prevents “out of gas” errors and enables precise budgeting for dApp launches and upgrades.
Hemi has also introduced a Dynamic Refund Pool, directly integrated into Hemi’s native wallet ecosystem. This system automatically refunds 5–20% of gas fees to users with high on-chain activity or to dApps that surpass specific monthly transaction thresholds. As of October 31, 2025, over 2.3 BTC has been distributed through this mechanism — equivalent to more than 150,000 free transactions across the network.
In parallel, Hemi is testing ZeroGas Mode on its “Helios” testnet — a mechanism that lets users pay gas fees with Hemi Points (HEP) instead of BTC. The mainnet rollout is expected in Q1 2026, bringing true gasless transactions to Bitcoin DeFi for the first time, similar to Ethereum Layer-2’s meta-transaction model.
Architecturally, these breakthroughs reflect a design philosophy Hemi calls “gas-aware architecture.” Every layer — from the execution engine to the oracle module — is optimized to minimize computational waste. Hemi doesn’t cut corners or compromise security; it redefines how gas is calculated and allocated, ensuring that speed, cost efficiency, and security coexist harmoniously.
With over $45 million in TVL (as of October 29, 2025) and more than 110,000 monthly active addresses, Hemi’s ability to maintain low fees and high throughput makes it a natural choice for developers building real-world DeFi use cases — from lending and yield aggregators to stablecoin settlement systems.
Gas optimization is more than a technical milestone — it’s the foundation of scalability. Hemi isn’t just helping users save a few satoshis; it’s making Bitcoin DeFi economically viable on a global scale.
