Ethereum fees are at a record high, but even so, a Uniswap user paid well above the current fee with a gas fee of $ 36,000 for a single transaction.
Crypto twitter has been inundated with complaints about unsustainable fees for using the Ethereum network, but the fees only exacerbated a DeFi user’s fat mistake.
The exorbitant transaction was tweeted by Groundhog Network co-founder and CTO Andrew Redden, who confirmed it was related to Uniswap.
Presentation: The most expensive approve https://t.co/WQvgjZWFug
– Andrew Redden ️ (@androolloyd) February 23, 2021
The ridiculous fee turned out to be a typo, as the user manually entered two prices into gwei together. The 500,801 gwei fee should have been one (500 gwei) or the other (801 gwei) but not both.
It came in at a whopping 24.94 ETH, or roughly $ 36,000 at the time it was made.
Average transaction fees have skyrocketed to an all-time high of around $ 40 according to Bitinfocharts.com, after increasing more than 1,000% since the beginning of the year. Etherscan’s gas tracker reports an average of $ 23.85 for an ERC-20 transfer and $ 73.79 for a Uniswap exchange at this time.
An Ethereum upgrade proposal called EIP-1559 may help alleviate some of these fee issues and developers are hinting that it could be incorporated into Ethereum’s ‘London’ upgrade scheduled for July 2021.
On February 23rd, Ethereum’s lead developer Tim Beiko released an update on EIP-1559 in which he said that “large state tests are 99% done.” A call to developers on March 5 will confirm whether the EIP will be included in the London update, he added.
The current gas calculations system involves a bidding system for transactions where miners naturally prioritize the highest bids and the lowest ones take much longer. EIP-1559 will modify this auction system by dynamically adjusting the rates so that users pay the lowest bid for the block. This enables automated portfolio and market makers to accurately calculate fees and provide better estimates. Beiko elaborated;
“Another way of looking at this is that 1559 makes the price of inclusion of transactions explicit in the protocol, rather than implicit, as it is now.”
The proposal will also burn gas fees that are paid in ETH and this will have a longer-term impact on the issuance and supply of Ethereum. Naturally, the miners have expressed their disapproval of this, although the network’s co-founder, Vitalik Buterin, has commented (in Chinese) that any counter action they take may simply accelerate the move to PoS.