• November 30, 2020

Ethereum might soon add Wallet fee to support developers

Ethereum might soon add Wallet fee to support developers

The creator of Ethereum blockchain network – Vitalik Buterin has apparently proposed an increase in transaction fee on the network with an intention to fund the developer community.

It is evident that the Ethereum network has witnessed a huge surge in its user base and being the second largest blockchain in the world would require appropriate maintenance from developers as well.

In a view to address this issue, Buterin made a recent tweet on Gas fee hike plan, explaining the benefits of the same.

Traditionally any public blockchain network requires transaction fee for validating and adding new blocks to the network. In the world of Ethereum, it is known as Gas fee. These are denoted in the form of gwei, a unit for measuring ether(the cryptocurrency).

Further, he added that with just “one-off” payment of 1 gwei ($0.01 is about 73,000 gwei) for transactions sent to Ethereum wallets 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

Interestingly, Buterin claims the decision was based on initial consultation with experts finance area and mentioned that – ” I came up with the proposal after talking with economists at the Economics and Computation conference at Cornell last year … I’m hoping the proposal can be included soon “

So far, the community has given mixed responses, quoting the various instance of other wallet such as bitcoin‘s MultiBit wallet had tried and failed implementing the same.

Despite, all these reactions, Buterin said that – ” has been very encouraging and hopes to see it included in ethereum wallets soon “

What do you think, is it a good idea to add an extra transaction fee? Do you support this?Let us know your thoughts in the comment section below.

Finance

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