Vitalik Buterin, co-founder of Ethereum, expressed his disapproval of free transactions and advocated payment of a gas fee. His tweet on March 8 expressed his thoughts on charging a 1 gas fee or gwei for wallet transactions to support independent developers and the inclusion of a transaction threshold. This would raise up to $2 million a year which would drastically improve funding for wallet programmers and developers, according to the tech honcho.
Gas fee or gas price is the gateway payment made by the user in exchange for the services provided. Gas is the unit to measure the amount of computational work required to execute transactions and operate smart contracts in the Ethereum network. To put it simply, it is the blood of the system responsible for its healthy running. Buterin has proposed the transaction fee to be a flat fee made in the smallest unit of Ethereum as to avoid perverse incentive and to get rid of the optimization of the gas fee.
Response to Buterin
Ever since the tweet, there have been mixed responses from the crypto community. The idea of a gas fee surcharge isn’t new. Multibit tried implementing this strategy in the past but failed to gain a positive response. Consumers weren’t up for the extra transaction fee, and as a result, the upgrade failed miserably leading to the removal of the fee charge and later the wallet altogether.
The Hard Truth
Implementing a surcharge fee for transactions has also been adopted by several blockchain trading websites. EOS charges its users a fee when they open a trading account on their network. Steam, which runs on the same technology as EOS, also has an account creation fee.
Vitalik Buterin has also proposed implementing an EOS inspired fee that the users would have to pay on creating an account.
That is not all. Ethereum’s growing rise has led to increased data storage problems. To tackle this problem, Buterin has suggested implementing a storage fee on the Ethereum network as well.