- Vitalik Buterin hints that the drive to push Ethereum often circles back to the lucrative gas fees.
- According to Buterin, when fees skyrocket, it is a handful of big players who reap the rewards.
- The Ethereum co-founder thinks users should be worried about capture as a risk on the Ethereum network.
According to Steven Nerayoff, a former Ethereum advisor, the drive to push Ethereum often circles back to the lucrative gas fees. Nerayoff made this statement via a post on X (formerly Twitter), where he explained that when fees skyrocket, it is not the average user but a handful of big players who reap the rewards, especially if ownership and mining are as concentrated as suspected.
Citing a portion of Ethereum’s whitepaper, Nerayoff noted that Ethereum’s ICO Legal Opinion estimated gas fees to usually range from $.01-$.02. He believes that by comparing that to current fees, users can ascertain who is benefiting from the inflated gas expenses on Ethereum.
Nerayoff’s stance aligns with the opinion of a crypto user who suspects ongoing manipulation of the Ethereum network by “Disguised Whales.” The user cited a statement by Ethereum co-founder Vitalik Buterin confirming the possibility of certain players in the Ethereum network influencing the protocol’s functionality in terms of fees.
In an uploaded video, the Ethereum co-founder noted that apart from shutting down, Ethereum users should be worried about capture as a risk on the Ethereum network. He defined capture as a scenario when a small group of actors gains enough power in the decision-making process to ensure things go their way, especially when what they want does not align with what the community wants.
Buterin also described the actions of such players as a kind of 51% attack, where they could censor all transactions except for the ones with high fees. By doing so, the blockchain could continue to function if people continue to pay the high fees, which would benefit those censoring the transactions.
In early December, gas fees on the Ethereum blockchain spiked following the sudden popularity of a new collection of NFT called Buterin Cards, reminding some users of a few years ago when Ethereum became unusable due to soaring fees.
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