Sidni Standard's avatar
$16.4m follower assets
The #1 thing I hear consistently in Twitter Spaces is how high the $ETH.X gas fees are, and Unstoppable Domains has decided to take a stand against them, by deciding to transfer to $MATIC.X

'“Gas” on Ethereum refers to the variable cost of making any sort of transaction on the network and can often get quite expensive. For example, gas fees to mint a single domain name on Unstoppable Domains via Ethereum were as high as $100.'

sam stribling's avatar
@sidnistandard is the gas fee what the miners are collecting? So, for example one of my friends has a crypto rig he uses to mine and he makes a set amount of the underlying coins based on how much he can process. Is this the same thing?
Michael Panebianco's avatar
For $ETH.X's case, I don't think it is (but could be wrong!)

The gas fee is essentially burned and removed from circulation, and is used to counter the inflation generated by miners. The coins 'mined' by miners are effectively rewards or a payment to maintain the system.
sam stribling's avatar
@tecantra crypto is confusing!! 🤣
Michael Panebianco's avatar
Yep! And while I believe the above is true for Ethereum, it's not the case for every blockchain and every coin - they all have their own processes and distribution methods!
Sidni Standard's avatar
@tecantra you're pretty spot on with what gas fees are. Put simply, it's the fee you have to pay when doing anything on the Ethereum network @strib!
Sidni Standard's avatar
@strib part of the reason for the cost on $ETH.X is due to the proof of work consensus that's used. This is the major reason why there's been a lot of building on $SOL.X lately... it uses a proof of stake (or proof of history, to be more accurate) consensus that doesn't require as much energy, is magnitudes faster, and costs almost nothing to mint things
Michael Panebianco's avatar
@sidnistandard @strib But don't forget that $ETH.X's next big thing is the move to PoS.

I've finally been reading about $SOL.X and the early impression I have is that it's only USP compared to $ETH.X is the gas fee. That advantage will be removed once $ETH.X transitions.
Sidni Standard's avatar
Yes, but while $ETH.X is taking its time to make the switch, $SOL.X is gaining market share. Who's to say people who've left will come back if they've found a suitable alternative that they've gotten comfortable with?
Michael Panebianco's avatar
Very true. In fact, a lot of the interviews and articles I've read believe that although $ETH.X has first-mover's advantage in the space, the protracted release of their PoS update is hurting their market share.

I'm yet to be convinced that $ETH.X won't be the biggest in the space but there will certainly be other chains competing with them. Or perhaps they'll develop slightly differently to cater to different niches.

That's lead me to a good question though - if a blockchain founder/developer sells all of their tokens, there's no financial motivation to remain involved or continuing updating it; dreams and enthusiasm won't pay for a house or put food on the table so what's going to stop a particular blockchain stagnating once the founders sell out?
Sidni Standard's avatar
"Or perhaps they'll develop slightly differently to cater to different niches." <- this is exactly what I think is gonna happen. We're in a world now where being a jack-of-all-trades is a liability.

And your great question is exactly what I think about, and why I'm not bullish on DAOs being the de-facto company structure of the future. It's hard to imagine that a founder/founding team will want to upkeep a company if they're not being compensated for it. They're gonna end up moving onto things where they can reap the rewards and more importantly, where their say matters more

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