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Gas Fee Reduction Idea: A Quick and Simple Future EIP?

Gas Fee Reduction Idea: A Quick and Simple Future EIP?

Etherum Reddit

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Gas fees on Ethereum are causing lots of issues. Whether it be users having locked funds within the DeFi space to just everyday users being priced out of using Ethereum dApps. Yeah, its great that we have some L2 solutions that mitigate some of the gas fees, but still, migrating assets onto the L2 networks uses Ether for gas.

The Ethereum Devs chose to burn some of the fees with EIP1559, not exactly sure why, but it sure made Ether HODLers and whales quite a bit of money. Its great that scarcity causes these increases in investor's, founder's and HODLer's portfolios. What is NOT great is the fact that Ether is the driving mechanism of the blockchain, in which all interactions come with a fee, paid in Ether. With Ether being the medium for payment to transact on the network and the continuous reduction in inflation of the asset, Ethereum users no longer solely have to worry about network congestion. Users are faced with needing to also worry about the price of Gwei.

Let's zoom 30 years from now...

The price of 1 Ether is $300,000! This is awesome, right?

...Wrong! To send Ether will consume 21,000 gas. 30 years into the future, we'll say that the going rate at the time we would like to send $1,500 worth of Ether is 10 Gwei. So to calculate the cost of the transaction:

21,000 gas * (10 Gwei * 0.000000001) = 0.00021 ETH
0.00021 ETH * $300,000 = $63 transaction fee

Could you imagine at 100 Gwei?!? Or what about interacting with a contract that consumes 500,000 gas! The interaction would cost over $1,000 at 10 Gwei!

Okay, hopefully I got the point across. Now, lets fix the runaway gas fees...

The most simplistic way to avoid atrocious gas fees would be to reverse split Ether. A reverse split of 100:1 would put the USD cost of transacting on Ethereum to about double what it currently costs on Binance Smart Chain or about 10 times more than on Solana. This reverse split should be relatively easy to perform, just may be a little tedious.

Just an idea... However, its the best idea I've seen other than waiting until ETH2.0 launches. By the time ETH2.0 launches, at the rate migrations are taking place, by June 2022 Ethereum will have less than half the TVL within the DeFi sector.

submitted by /u/CryptoCMMinerZero
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