Miners Marked a Record Profit as Ethereum Transaction Fee Surge Abruptly

September 1, 2020 4:42 PM UTC

Ethereum transactional gas fee has continuously been rising since the start of 2020. According to the Glassnode report, Miners on the Ethereum blockchain have achieved a new milestone by earning $500,000 in transaction fees, in less than a couple of hours.

Although miners are endorsing record revenues, constantly growing miner’s achievement has been raising concerns in the Ethereum community. Erik Voorhees, CEO of ShapeShift, posted a tweet, “Prediction: Ethereum gas fees ruin Defi for normal users (until Ethereum 2.0 in 1-2 years).”  He further added that Ethereum constantly growing transaction fees might force developers to utilize other compatible platforms to build new projects.

Vitalik Suggest Layer Two Technology

While pointing to growing transaction fees of the network, Vitalik Buterin, co-founder of Ethereum, said that Ethereum users should be utilizing a layer-2 scaling solution to resolve the matter.

“To those replying with “gas fees are too high”, my answer to that is “well then more people should be accepting payments directly through zksync/loopring/OMG”. Seriously, scaling to 2500+ TPS for simple-payments applications is here, we just need to… use it,” he said.

Moreover, a new Ethereum improvement proposal (EIP) has been proposed to decrease block reward almost by 75%. EIP-2878 is proposed to preserve the buying power of ETH by minimizing block reward to 0.5 ETH from 2 ETH.

However, the mining community has exhibited intense criticism. Miners behind a new proposal are more excited about investors’ concerns, instead of the network’s security, as suggested by opposing members. Time Beiko, a product manager of PegaSys, thinks “this is much too dramatic of a change, given we’ve gone from 5 to 3 (-40%), then 3 to 2 (-33%), now you are going from 2 to 0.5 (-75%).”

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