Ethereum’s Vitalik Buterin Proposes Increased Wallet Fee As A Way To Fund Blockchain Developers
Ethereum Co-Founder Vitalik Buterin Proposes Wallet Fee As A Way To Fund Devs
The co-creator and public face of the Ethereum network, Vitalik Buterin, has recently proposed an increase in user fees on the network as a way to support the work of the developers. According to his Twitter profile, he proposed that the community should support 1 gas fees for transactions sent via their wallets in order to help to fund development.
In case you are not familiar with the term, gas fees are basically how payments made to compensate the computational energy required for validation transactions is called in this blockchain.
The payments would be minimal by transactions as one gas fee (also known as gwei) is less than a penny. In fact, $0.01 USD is equal to 73,000 gwei. Individually, this would not make a difference to anyone paying it, but Buterin hopes that this small fee could raise collectively $2 million USD per year, which would be very important for the developers to continue their work.
According to the Ethereum mastermind, this would increase gas costs by only 7% and they are already very small, but it could raise a significant amount of money in a sustainable way. It is a solution that covers the grants sent by the Ethereum Foundation every year and would almost make no changes in how much people spend.
However, he affirmed that he did not want to turn this fee into a mandatory rule, but an informal norm that people could follow in agreement. He affirmed that there is already a high degree of trust between all the people involved in the market, so this could work
Reaction To Buterin’s Comments Have Been Mixed So Far
The reaction to raising gas fees would obviously be mixed. The community has been divided and, while some people defend the idea, some others seem to loathe it.
For instance, one user pointed out that MultBit, a Bitcoin wallet, has tried to do something like this and it failed to actually implement the fee system. According to the user, the main problem was that people were not enthusiastic about paying for something that was free before.
It did not matter that the fees were not high, nobody upgraded their wallets because they did not want to pay fees. Eventually, the company simply had to remove the fees not to lose its clients. Development for the wallet almost stopped because people started to abandon it as they did not agree with the increase in price.
However, Buterin told Coindesk, which has also reported on this story, that the feedback from the community so far has been greatly encouraging. According to him, many Ethereum wallets might start using these fees soon.
Will he be successful? It is too early to know, but some of the people in the community will surely object against this idea even if the fee is almost irrelevant.