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Circle Arc gas: USDC pays for execution
Distinguish a fee asset from a fixed fee promise.
Circle Arc uses USDC for gas. That changes which asset a fee-paying account needs; it does not make execution free or establish one permanent fee for every transaction.
The fee has more than one input
The documented design adjusts the base fee using recent network utilization: how much of the available capacity is being used. An exponentially weighted moving average smooths short-lived spikes. Different operations still consume different amounts of gas. Fee estimates and available funds therefore remain part of transaction preparation.
For an illustrative payment service, distinguish the amount delivered to the recipient from the execution fee. Store those quantities separately so that a receipt does not mistake total account outflow for the purchase amount.
The official design page contains testnet parameters and approximate targets. Use the current network's fee reference and estimation interfaces for implementation, rather than treating those examples as a mainnet guarantee. This page explains the mechanism; it is not a claim that Payment Kit already supplies a Circle Arc adapter.
Documentation checked September 29, 2026.
Sources and further reading
Check your understanding
Does paying gas in USDC mean every transaction has the same fee?
No. The fee asset and the amount of execution work are different things.