The co-founder of Ethereum, Vitalik Buterin, recently proposed that crypto wallets should charge a small gas fee for transactions, to help funds its developers. In the suggestion of Vitalik, a small amount in feel may collectively lead to up to $2 million per year.
The suggestion of Ethereum’s co-founder
Using the social media platform Twitter, Vitalik made his suggestion, proposing a one-off 1gwei payment for transactions from the Ethereum or ETH wallets.
The transaction fees on the ETH network are actually dominated in gas, which itself is usually measured in gwei. The fees actually see users compensate miners for the computational energy utilized to secure the network and also validate transactions. So, about 73,000 gwei is equal to $0.01.
Buterin also noted that he wants to see the fee as a norm and not as a mandate in the ETH ecosystem. When he was asked how he could actually stop the users from free-riding by bypassing these costs, he indeed noted that while it is going to be possible to do that, hopefully, the fee could also be set low enough, to avoid incentivizing the development of the “pirated” Ethereum clients.
Mixed responses of the crypto community to Buterin
The reaction of the cryptocurrency community to Buterin has been initially mixed, but soon some critics started piling up.
One of the users pointed out a wallet which was called MultiBit, and which tried to add a similar system but other users weren’t willing to pay for something which was previously free.
Another user also noted that adding fees for some specific purposes like this one may snowball, and probably give governments throughout the world the chance to collect taxes on crypto transactions through fees.
The implemented network upgrades of ETH make it more efficient
In the past, Vitalik also proposed fees to pay for storage on the network, and for account creation, which is similar to the ones of the EOS blockchain. In recent times, he compared Bitcoin to a pocket calculator and ETH to a smartphone, as the flagship crypto do just one thing well, while ETH has the capacity to do almost everything.
The second-largest crypto by market cap has, as it was said, implemented its Constantinople and St. Petersburg network upgrades, which among other things increase the efficiency of the network. Its block generation rate also increases because its ‘difficulty bomb’ has been diffused as expected.
Notably, the central stock exchange of Switzerland, SIX, recently launched an ETH-based exchange-traded product, called the Amun Ethereum ETP or AETH.