Although it may not appear as much, the crypto space has experienced a downfall these past few weeks. Several cryptos are plummeting in value as concerns regarding the start of a bear market are now rising. The Ethereum network, for example, has its transaction fees at its all-time high, and the community cannot be any more dismayed how outrageously high its current gas fees are. This is seen by many as the result of the ever-growing interest with decentralized finance (DeFi) projects that are currently housed within the network.
DeFi investors and some industry players are indeed happy that the sector is booming, but such successes came with a massive price. The overwhelming demand for DeFi has created a very tumultuous and undesirable ecosystem wherein high gas fees are practically required. This, in turn, has adversely hindered the growth of several other tokens.
This rapidly emerging problem within the network has forced the core developers of Ethereum to schedule a virtual distress meeting this last September 4th. Needless to say, the main topic of the said discussion is the overblown gas fees and how they may remedy the already apparent issue.
After the said meeting, Ethereum came up with an idea wherein it would try to use gas tokens such as Gas Token (GST) and Chi Gastoken (CHI) under a mechanical framework that gives back gas whenever the storage space within the Ethereum Virtual Machine is emptied. Basically, with this plan, users may spend a small portion of their ETH holdings at the current gas fees in order to secure gas that is available for use at a later time. Notably, it will be devoid of any price increase risks because the gas fee wherein the particular token was minted will still be the gas fee actually used.
Tthis particular plan may drive the network to disregard the increase in gas fees, unlike what it currently does. He adds that people who would utilize such tokens will now have a far cheaper gas on top of their transactions getting prioritized without having to spend even a single ETH.
Although this current masterplan of the network to combat rising gas fees may look good on paper, it is still clear to see that Ethereum has a whole lot of problems on its plate. As many experts have previously predicted, Ethereum is now evidently struggling to sustain the growth of DeFi, and if this issue persists.