Ethereum Faces Fresh Attacks for High Gas Fees
Market Musings

Ethereum Faces Fresh Attacks for High Gas Fees

One crypto executive says he has "abandoned Ethereum" because the issue remains unresolved — and those who donated to ConstitutionDAO are suffering.

Ethereum Faces Fresh Attacks for High Gas Fees

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Ethereum is coming under fresh criticism for exorbitant gas fees.

Zhu Su, the CEO of Three Arrows Capital, wrote a heated post on Twitter over the weekend in which he declared he has "abandoned Ethereum" because newcomers can't afford to use it, adding:

"Ethereum culture suffers massively from the Founders' Dilemma. Everyone is already far too rich to remember what they originally set out to do. Perhaps a bear market is needed to remind them, or perhaps we must build elsewhere, but this is what it is — nothing new under the sun."

He later apologized for the strong wording of his original thread, and said it had been written in the heat of the moment. "There are great teams working on scaling ETH on L2," Zhu added.

And in a nod to the ever-increasing number of rival blockchains out there, the entrepreneur wrote:

"I do know for the millions of new users coming, they should not be shamed for going to other ecosystems. Neither should devs be shamed for building on them."

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The Problem 

Although Ethereum 2.0 is set to vastly increase the network's scalability, the crypto world still faces an agonizing wait before it officially launches.

It's no coincidence that projects such as Solana and Cardano — which also offer smart contract functionality — have established a firm presence in the top 10 cryptocurrencies by market cap in 2021.

Indeed, another so-called "Ethereum killer," Avalanche, has seen the value of its AVAX token surge by 43% over the past week — hitting new all-time highs and bucking the bearish trend engulfing coins right now.

The problem was powerfully illustrated with the demise of ConstitutionDAO last week, which failed in its bid to buy a rare copy of the U.S. Constitution for millions of dollars.

Journalists at Motherboard attempted to donate to the project with $200 in ETH, but claim $90 of this was eaten up in gas fees. Now that refunds are being promised, "the entirety of the amount invested would be wiped out." 
Pointing to some crazy records on the blockchain, the article noted that someone ended up paying $18 in order to receive a $0 refund. Meanwhile, another donor who attempted to get a $76 refund processed only ended up getting $2 once fees were taken into account.