Vitalik Buterin, Ethereum’s 25-year-old founder, recently tweeted a proposal to increase user fees on the ethereum network in order to raise sustainable funding for wallet developers. Buterin’s proposal will be a great opportunity for ethereum blockchain clients and wallet developers to earn from every transaction their user base make, provided wallet users agrees to it.

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

User pays the gas fees (denominated in gwei) for the computational power required to process and validate transactions on the ethereum blockchain.

Buterin expects wallet users to adopt in a bid to support the cryptocurrency/developer community and suggested that wallet developers charge a gas fee of 1 gwei for every transaction sent through their wallet. The aim of this intends to balance the needed computational energy that enables translations on the ethereum network.

As per Buterin, the proposal emerged from his conversation with economists at a conference at Cornell last year.

Buterin’s proposal was equally welcomed with both positive and negative comments as one user suggested that the now-defunct Multibit wallet implemented this policy initially but there was no compliance. However, Buterin still believes that the overall response had been promising as the majority are open to the idea.

As per a survey report, the number of Blockchain wallets has been growing since the creation of the Bitcoin, reaching nearly 32 million Blockchain wallet users at the end of December 2018. With such a huge user-base of crypto wallet, developers can certainly benefit provided Buterin’s proposal on wallet fee is taken seriously & implemented.

LEAVE A REPLY

Please enter your comment!
Please enter your name here