Ethereum Founder Tackles Fees 2.0; Pay-To-Stay Proposed

Vitalik Buterin, the ethereum founder, has written a new post tackling the issue of Ethereum scaling and network decentralizing in an article called “A simple and principled way to compute rent fees“. In this article, he proposes a way of fixing the scaling issues of the network by introducing the concept of “Pay-to-stay” in the network by every contract. A fee designed to collect the payment for the rent of the data in the ethereum blockchain. This would be added to transaction fees already existent.
Initial Coin Offerings, known by the acronym ICOs, are mostly based on Ethereum and its smart contracts feature. Lately, the myriad of ICO projects that have been launched has Ethereum people worried about the sustainability of this trend in the near and far future. Most ICOs are short-lived and then its contracts stay too long in the network idling. By defect, every smart contract is assumed as eternal, so the time of permanence in the network is infinite.
The problem with this approach is the same solution. The objective of every crypto assets is adoption, and everyone is haunted by fees. Adding this fee to the blockchain would hamper adoption if the fees are too high.
Another issue is the volatility of this proposed fees. Remember last December, when Bitcoin rose to more than $17,000; and fees rose exponentially to the point that making a transaction was not feasible. Adding a new fee would aggravate that making Ethereum unpractical and sending developers and users to look at other directions. Even Buterin states in his post that:
This is quite possible, but transaction fees are not expected to be any less volatile. They were certainly less volatile back in 2011-2017, but that was only because blocks were not full (for bitcoin or ethereum), and so de-facto fees were centrally planned by core devs and miners who adjusted them downwards in response to public pressure every time the fees got too high; with full blocks this is not possible, and so tx fees are even more volatile than prices.
Scalability and fees are and will be an issue for all these cryptocurrencies in the future. Let’s hope they can find a viable answer to these problems without affecting its core appeal: decentralized, cheap operations.

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