Last year and earlier this year, there was a formiddable explosion of Decentralized Finance apps/coins/tokens/assets that were being developed on the Ethereum blockchain. While the market was booming for ETH (and still is) there seemed to be no better place to create your assets to spread awareness and perhaps also grant legitimacy to your new crypto that was offering a share of the DeFi market.
While this was all well and good, fuelling your DeFi staking by burning ethereum is theoretically a good idea, but with the current insane gas prices we are seeing, you would have to burn a small fortune just to put up any coin of questionable future value for those kind of activities.
This also goes for the mining procedure that require small time miners to pay a good fee of close to 8-10 USDs worth of ETH for a simple transaction, basically swallowing lots of the profit for small time hobby miners who might just have a casual set up with one card in a personal computer.
While some of the gas fee bloat is understandable due to the extremely high levels of traffick etherhash is getting, some of it is due to the last hard fork with rewarding the development team and burning some of the transaction costs. The intention of this is that it will set the stage for the later process in which this will occur at a higher level when ETH goes proof of stake in the ETH 2.0 hard fork this spring 2022 Q2.
These choices can certainly be rationalized, it is once again a reminder that ETH is going towards more centralization and favouring the wealthiest investors rather than attempting to pursue a decentralization of their Cryptocurrency. Just take a look at the requirement for running a ethereum node in the future of having 32 ETH. 32!!! That number is even in todays value a small fortune, close to 100 000 USD. Hardly something the casual crypto enthusiast can afford to put in, not to talk about mine before then.
As you can see, Im quite dissillusioned with the development of ETH, despite being grateful for everything it has done to drive mining and crypto into the public eye.
What are your thoughts?
