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Vitalik Buterin proposes to increase user fees on the ETH network


www.chepicap.com 09 March 2019 02:40, UTC
Reading time: ~2 m

Vitalik Buterin, the creator of the Ethereum blockchain project, took to Twitter to propose an increase of user fees on the ETH network for the purpose of supporting developers with a 'sustainable non-institutionally-biased market-based' funding.

In a bid to support developers with sustainable funding, Ethereum’s co-creator Vitalik Buterin, proposed to increase the user fees on the network.

I propose we consider supporting a community norm that client/wallet devs can/should charge a 1 gwei/gas fee for txs sent through their wallet, we don't try to circumvent such fees, and we support protocol changes to make such fees easier (eg. abstraction enabling multisends)

— Vitalik Non-giver of Ether (@VitalikButerin) March 8, 2019

Read more: Is Ethereum at $100,000 really possible?

Gas fees denominated in gwei, is the internal pricing for running a transaction or contract in Ethereum, which are paid by the users.

Vitalik suggested that by increasing the average user costs by ony 7%, it could collectively raise up to $2 million in a year, which would easily cover all Ethereum Foundation grants to date.

At the cost of only increasing average user gas costs by ~7%, it would raise up to $2m/year in sustainable non-institutionally-biased market-based funding for client/wallet developers.

— Vitalik Non-giver of Ether (@VitalikButerin) March 8, 2019

For reference, that would cover all EF grants to date to eth2 client devs (not including Parity, which is not just eth2...) with room to spare.

— Vitalik Non-giver of Ether (@VitalikButerin) March 8, 2019

Read more: Vitalik: "think of BTC like a pocket calculator, and ETH like a smartphone"

Vitalik further points out that he wants to encourage this fee as a norm, not a mandate, in the Ethereum ecosystem.

To be clear, I am NOT advocating a norm *mandating* the 1 gwei fee. I am arguing for a norm diacouraging overly complaining about and/or trying to circumvent the fee if/where it exists.

— Vitalik Non-giver of Ether (@VitalikButerin) March 8, 2019

The Russian-Canadian programmer told CoinDesk that, in general, the community feedback to his proposal has been very encouraging and he hopes to see it included in ethereum wallets soon.

'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', he said.

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