Crypto Currency News
Ethereum Classic

Vitalik Buterin Suggests Stopping Ethereum Gas Refunds

The central theses

  • Vitalik Buterin has proposed withdrawing gas refunds from Ethereum.
  • Ethereum’s “SSTORE” and “SELFDESTRUCT” features allow users to store gas while prices are low. By burning the contract when gas prices are high, they can cover the gas fee.
  • The proposal would have a huge impact on “gas tokens” like CHI.

Share this article

Ethereum co-creator Vitalik Buterin has published a proposal to remove gas refunds in the London blockchain update.

Vitalik Buterin is seeking refund removal

Buterin posted a proposal on Ethereum’s Github page this week called EIP-3298. He proposes to remove the gas refund for the functions “SSTORE” and “SELFDESTRUCT” in the London update of Ethereum.

Ethereum currently allows users to store gas in smart contracts using the SSTORE feature. By using SELFDESTRUCT to destroy a smart contract, it is possible to use the gas stored in contracts to cover the cost of a transaction when gas prices are high. Users are currently taking advantage of this through tokens like CHI, which were launched by the team behind the 1 inch exchange.

While gas tokens can be useful in raising gas prices, gas refunds are believed to help inflate the state as many contracts are added to Ethereum nodes when gas prices are low.

ParaFi Capital investor Nick Chong released a detailed tweetstorm explaining the impact EIP-3298 would have on the network. In it, he noted that the price of GST2, another gas sign, and CHI had dropped that weekend, and argued that the proposal may have been a factor.

Vitalik recently proposed to cancel the ‘SELFDESTRUCT’ related gas refund on Ethereum as part of the London upgrade.

This apparently lowered the demand for gas and brought prices down to double digits.

Let’s explain what’s going on and why this is important for Gastoken ($ CHI, GST) 👇

– Nick Chong (@ n2ckchong) February 28, 2021

If passed, the proposal would be included in Ethereum’s London update. planned for sometime this summer. It could also mean the end of gas tokens like CHI and GST2 as they would be of no use without the refund feature.

Ethereum gas problems

Buterin’s proposal comes amid major gas-related issues for Ethereum.

Earlier this month, the fee for using the network hit a new all-time high. Gas charges on February 22nd briefly exceeded 1,000 gwei, which is roughly $ 346 for a simple uniswap trade.

Although they have cooled down a bit Since then, the clogging of the network has continued to be a huge burden.

Ethereum’s problems likely contributed to the success of Binance Smart Chain. The chain run by Binance offers an experience similar to Ethereum in a more centralized format. Protocols such as PancakeSwap recall elements from DeFi to Uniswap, and users of the chain can participate in activities such as yield farming. Centralization aside, Binance Smart Chain is much cheaper to use. It has drawn many users and builders to the platform in the past few weeks. Even 1 inch Exchange was migrated to the network.

So rare

The story of Binance Smart Chain also led to clashes between supporters of Ethereum and Changpeng Zhao, the founder of Binance. Zhao went to Twitter to take pictures on Ethereum.

“ETH is now a network for the rich, but soon these people will be poor,” he said, referring to the gas charges. He went on to clarify that he thought Ethereum’s success could inadvertently lead to its demise.

Okay, last thread about ETH and its “killers” for today. Vitalik once said (and there is a video of it somewhere) that ETH killer is ETH. Ironically, I think he’s right.

ETH is mostly successful. But his success (not other coins) can also be his own killer. 1/5

– CZ 🔶 Binance (@cz_binance) February 28, 2021

After Zhao’s comments, it emerged that someone had provided code related to the Tiananmen Square massacre of Binance Smart Chain. It is believed that the code was released to test Zhao’s response. The Chinese Communist Party has endeavored to censor the Tiananmen Square protests for the past three decades.

Despite Ethereum’s ongoing gas problems and the potential threat posed by Binance Smart Chain and other Layer 1 blockchains like Solana, progress appears to have been made in solving the problem. In March, Ethereum’s Layer 2 solution Optimism will be seriously introduced. The update promises to support blockchain scaling through optimistic roll-ups.

Disclosure: At the time of writing, the author of this role owned ETH and a number of other cryptocurrencies.

Ankrs logo

This message was provided to you by ANKR, our preferred DeFi partner.

Share this article

The information on or through this website is obtained from independent sources which we believe are correct and reliable. However, Decentral Media, Inc. does not warrant or guarantee the currency, completeness, or accuracy of any information on or through this website. Decentral Media, Inc. is not an investment advisor. We do not provide personalized investment advice or other financial advice. The information on this website can be changed without prior notice. Some or all of the information on this website may be out of date, incomplete or inaccurate. We may, but are not required to, update outdated, incomplete, or inaccurate information.

You should never make an investment decision for an ICO, IEO or any other investment based on the information on this website and you should never interpret or otherwise rely on any information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional when seeking investment advice on an ICO, IEO or any other investment. We do not accept any compensation for the analysis or reporting of ICO, IEO, cryptocurrency, currency, token sales, securities or goods.

See full terms and conditions.

ETH Flash crashes by 60% at Kraken, gas charges reach all-time high

In the order book of the Kraken Exchange, the ETH tank was under $ 750, around $ 1,000 less than today’s market value. After the event, gas prices rose to 1,000 Gwei for …

As Ethereum’s gas fees break records, Optimistic Primes Layer-2 Solution …

Ethereum Layer 2 scaling solution Optimistic PBC has announced a fixed date for the start of its mainnet test version with Synthetix. Ethereum Gas Fees Force Alternative Optimism PBC announced a …

What are non-fungible tokens (NFTs)?

Tokenization works well for commodities like fiat currencies, gold, and physical land. By displaying a fungible asset on the blockchain, goods can be traded around the clock via limitless and smooth transactions. Fungible goods are …

1-inch exchange goes live in Binance Smart Chain

DEX-Aggregator (Decentralized Exchange) 1inch Exchange has started its service for Binance Smart Chain (BSC). 1inch expands to Binance Smart Chain 1inch Foundation has deployed its DEX aggregator and liquidity …

Comments are closed.