In yesterday’s article, we discussed state size and state bloat—how every transaction written onto a blockchain leaves behind permanent data that nodes must store and maintain. That naturally leads to another important question:

If blockchain storage is scarce and expensive, who pays for the data that occupies storage space long term?
This is the core logic behind State Rent.

In fact, State Rent is not a concept that suddenly appeared out of nowhere. It is an inevitable issue that emerges once a public blockchain ecosystem develops to a certain stage.

If we compare a blockchain to a city, then:

• Block space = roads

• State storage = land and buildings

Over the past few years, most projects have focused on “building wider roads,” meaning higher TPS and larger block capacity. But people are now realizing that even if the roads are wide enough, a city filled with abandoned factories, unfinished buildings, and unused warehouses will still run out of space.

State is exactly this kind of long-term occupied space that never moves out.

State Rent, at its core, introduces the equivalent of property management fees and land occupancy fees into blockchain systems.

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What Is State Rent?

State Rent means that if you occupy on-chain storage space for a long time, you must keep paying for it.

Unlike today’s mainstream blockchains—where once a smart contract or account is created, its data effectively lives forever—State Rent introduces a more economic model:

Data is no longer “pay gas once and store forever,” but rather:

continuous renting → time-based fees → no payment means the space is released.

This is similar to:

• server subscription renewals

• cloud storage plans

• website hosting fees

Except the objects now become:

• smart contracts

• account states

• storage variables

• token balance records

• NFT metadata

Why Does Blockchain Need State Rent?

The reasons are extremely practical. As on-chain applications continue to grow, several problems become increasingly obvious:

• old projects disappear, but their contracts still occupy storage

• zombie wallets are never used again

• experimental DApps write large amounts of data and are later abandoned

• NFT projects mint massive supplies that are never traded

Yet nodes are still forced to:

• download

• store

• verify

All of this low-value or abandoned state data.

If such data remains indefinitely, the consequences are clear:

• node operating costs keep rising

• ordinary users can no longer afford to run nodes

• networks gradually centralize around large institutions

• developers face almost no cost for abusing storage

State Rent is an attempt to bring state storage back to a principle of “use what you need, pay according to value.”

The Core Design Philosophy of State Rent

While implementation proposals differ across blockchains, most designs follow three fundamental principles:

1. Who occupies space pays for it — not a one-time gas fee, but a recurring cost.

2. No payment means cleanup — similar to a contract expiring without renewal.

3. Fees scale with size and time — more data and longer retention lead to higher costs.

This is a classic mechanism design that binds economic incentives directly to resource consumption.

What Changes Does State Rent Bring?

1. For the Network

• state growth is no longer unbounded

• node costs become more predictable

• decentralization becomes easier to sustain

• low-value state is gradually removed

This is long-term infrastructure optimization.

2. For Developers

• more careful use of storage

• less unnecessary state writing

• lighter application logic

• maintenance and renewal mechanisms must be planned in advance

This also encourages innovation in:

• state compression

• externalized storage

• Layer2 data management

3. For Users

• accounts may need to maintain a minimum balance

• contracts may require periodic maintenance funding

• inactive wallets may be cleaned over time

• NFT storage strategies may change

In other words, the assumption that “on-chain means permanent” will be fundamentally redefined.

The Controversy Around State Rent

State Rent is a very pragmatic engineering solution, but it is also highly controversial.

From the user perspective, concerns include:

• forgetting to renew and losing access

• unclear or unpredictable costs

• increased complexity in user experience

From the developer perspective, concerns include:

• higher operational burden

• more complex UX design

• compatibility challenges with existing applications

From a philosophical perspective, some argue that blockchains should guarantee permanence as the foundation of trust. In this sense, State Rent represents a direct collision between engineering realism and idealistic blockchain philosophy.

So why does the discussion continue?

Because there is an unavoidable reality: unbounded state growth will eventually overwhelm the system. Even idealism requires economic support.

State Rent is not designed to push users away, but to:

• ensure long-term sustainability

• prevent node requirements from becoming prohibitive

• align resource usage with real value

Just as the real world has finite resources, so does the blockchain world.

Does State Rent Undermine Web3 Ideals?

This is one of the most common concerns. Web3 narratives emphasize decentralization and permanent storage, and State Rent appears to challenge both.

But viewed differently, not all data deserves to live on-chain forever.

For example:

• temporary variables written by test applications

• intermediate states from one-time interactions

• abandoned contracts

• inactive NFT projects

• unused wallet records

Under traditional models, all of this becomes a permanent burden despite lacking long-term value.

State Rent therefore acts as a value-filtering mechanism:

• valuable long-term state remains funded

• valueless state is naturally phased out

From a broader perspective:

• resources are reallocated more efficiently

• overall state health improves

• ecosystem vitality increases

This resembles a form of market-based governance rather than arbitrary deletion.

How Could State Rent Be Implemented?

Current industry discussions focus on several approaches.

1. Charging by Storage Size

Fees scale with the amount of data stored, similar to cloud storage pricing.

• simple and transparent

• still affected by token price and gas volatility

2. Base Rent per Account or Contract

Accounts and contracts must maintain a minimum balance or periodically renew.

• simple and easy to enforce

• requires careful categorization to avoid unintended consequences

3. Charging Only for Complex State

Only advanced structures—such as mappings, tables, or metadata—incur rent, while basic balances remain free.

• more precise resource allocation

• higher design and maintenance complexity

State Rent and Layer2: A Natural Combination

As Layer2 adoption grows, the importance of State Rent becomes even more pronounced.

A clear trend is emerging:

• Layer1 focuses on settlement, security, and minimal state

• Layer2 handles high-frequency interactions and large volumes of active data

State Rent reinforces this separation:

• cold data is compressed, migrated, or archived

• hot data lives on Layer2 or application-specific chains

This allows Layer1 to remain a security and verification layer rather than a universal data warehouse.

Will User Assets Disappear?

This concern must be addressed directly.

In well-designed systems, assets themselves should not be easily deleted. Instead, potential outcomes include:

• inactive accounts entering a frozen state until renewed

• contracts losing execution privileges without maintenance funding

• non-essential business data being cleaned

Public chains are expected to provide:

• special protections for balances

• grace periods

• recovery and back-payment mechanisms

• advance notifications

• export and backup options

The ultimate goal is always asset safety—not asset destruction.

Impact on DeFi, NFTs, and GameFi

DeFi

Projects must ensure long-term contract availability, sustainable revenue models, and proper DAO management. Protocols without clear economic models will struggle to survive.

NFTs

Metadata storage may increasingly move off-chain. Low-quality or abandoned projects will gradually fade, making high-quality NFTs more scarce over time.

GameFi

Because games generate massive state data, more logic will move off-chain, with only critical data remaining on-chain—driving further Layer2 adoption.

Conclusion: Not “Whether,” but “How”

As long as public blockchains continue to grow, state management cannot be avoided. The real question is no longer whether State Rent is needed, but:

• how to design it fairly

• how to preserve user experience

• how to maintain decentralization

• how to align cost with long-term value

This is why Ethereum researchers, emerging blockchain teams, and academic institutions continue to debate State Rent intensively.

There may be no perfect answer—but it is a question the industry must confront.