Binance CEO Says Vitalik Buterin’s Proposed Wallet Fee Won’t Fly


Ethereum creator, Vitalik Buterin recently proposed increasing the user fees on the network in order to support developers with sustainable funding.

“I propose we consider supporting a community norm that client [and] wallet [developers] can [and] should charge a 1 gwei/gas fee for [transactions] sent through their wallet,” tweeted Buterin Friday.

https://twitter.com/VitalikButerin/status/1103997378967810048

However, the Chief Executive Officer of the largest cryptocurrency exchange Binance, Changpeng Zhao says this won’t fly.

“Don't think this will fly,”

tweeted Zhao Saturday.

Denominated in gwei, gas fees are payments that are made by the user to compensate for the computation energy required to process and further validate the transactions in the second-largest Ethereum blockchain.

Suggesting for a flat one-off payment of 1 gwei where $1 USD equals 7,436,340.8997 gwei, Buterin says it could collectively raise up to 2 million in a year.

“At the cost of only increasing average user gas costs by [roughly] 7 percent, it would raise up to [$2 million per year] in sustainable, non-institutionally biased, market-based funding for client/wallet developers. For reference, that would cover all [Ethereum Foundation] grants to date … with room to spare.”

Zhao further said that Trust Wallet, a cryptocurrency wallet that also includes Ethereum acquired by Binance:

“will remain free.”

However, Buterin had stressed he wants this to be a norm and not a mandate in the Ethereum ecosystem as he says given the fact that a high level of trust has been formed between the users and Ethereum wallets and that a bad wallet could “steal all your money.”

Crypto community is divided in respect of this as one Twitter user @Cryptoartyst said,

“Sounding just like the institutions we are trying to step away from.”

While another one said,

Another user Tweeted,

Despite the mixed reactions, Buterin is hopeful and expecting the proposal to be

“included soon.”

Meanwhile, the second-largest cryptocurrency is trading at $136.62 with 24-hours loss of 1.33 percent while being in the red by 1.25 percent in the BTC market as well.

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