Wednesday, March 20, 2019

Vitalik Buterin Proposes Wallet Fee to Fund Wallet Developers

Creator and founder of the second biggest cryptocurrency by market cap, Vitalik Buterin has suggested that user fees are increased on the Ethereum blockchain network to support developers with a sustainable fund.

Incentive for Wallet Developers

The majority of crypto holders with virtual wallets only care about the security of their wallets and an assurance of a wallet’s veracity, and just like any other digital commodity, only a few think about the developers behind it.

The debate of rewarding developers has not only been an issue just surfacing in the Ethereum community but one that has traipsed the bitcoin community as well intermittently now. From catering to miners who have their rewards halved after every five years to find a sustainable incentive for wallet developers, the decentralized community has found it hard to agree on a viable compromise.

The latest in the issue of rewarding developers stems from a recent tweet from Ethereum’s founder himself calling for collective funding (of negligible fee) for wallet developers in the Ethereum blockchain community.

“I propose we consider supporting a community norm that client [and] wallet [developers] can [and] should charge a 1 gwei/gas fee for [transactions] sent through their wallet,” Buterin tweeted on Friday.

The gwei is already a term familiar to users who pay gas fees on the Ethereum blockchain. Gas fees are denominated in gwei, with one gwei 73000 times less than $0.01—this means a dollar cent is worth about 73,000 gwei.

Buterin’s proposal suggests that payment of 1 gwei which of course is one of the most negligible fees one could ever pay, if made only once could raise as high as $2 million in a year: a more than a satisfactory incentive for the thousands of Ethereum wallet developers across the world. Explaining the genius behind his proposal, the Ethereum blockchain project founder further tweeted:

“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.”

Mixed Reception

Reactions too Buterin’s proposal have been mixed so far, but that has not kept from Buterin from being optimistic. While there has been a share of positive reviews, a user named Kevin Hodler noted that the same initiative had been tried by a Bitcoin wallet developing company but failed. According to him, the wallet called MultiBit stopped development sometime later because there was no sustainable support.

Buterin has however maintained that reactions to his proposal have been generally positive and is hopeful of an implementation in subsequent updates soon.

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