Someone has just Paid $22M in Ethereum Fees By DailyCoin
- Bitfinex paid $22.7 million in transaction fees after sending $100,000 worth of USDT
- DeversiFi announced the miner returned the 7,626 ETH that was paid out by mistake
- Fees on have not been resolved despite the EIP-1559.
It isn’t always easy to innovate. The cost of using blockchain is high. Entities that are transacting large amounts in cryptocurrencies can be vulnerable to network failures or fees. An Ethereum wallet was reported to have paid $23,000,000 in transaction fees on September 27, 2017.
Bitfinex Pays Excessive Fees
Data from Ethscan.com shows a wallet associated with Bitfinex paid a total of 7,676 ETH or $22.7 million after initiating a transaction worth $100,000 USDT. The USDT amount was sent to DeversiFi, as the company announced the successful implementation of the L2 bridge to enable low-cost transfers to presumably “avoid gas costs and frustration.”
Following the network error, Bitfinex announced the exchange would not carry the fees as they are “shouldered by third-party integrations,” after DeversiFi announced it would investigate the issue.
Although transactions on the blockchain are irreversible, DeversiFi tweeted that block 13307440 miner announced it will be returning all transaction fees that were paid out “incorrectly.” DeversiFi also confirmed it would issue a post mortem on September 28th.
Bitfinex, despite the fact that the issue seems like it is a network problem, has been accused of market manipulation in the past. This has placed the exchange front and center. Nonetheless, Etheruem’s gas fee structure has been criticized, with users reporting fees of over $1,000 as users compete for faster minting, provoking a Gas War.
On The Flipside
- The event will trigger new discussions about better network alternatives than Ethereum.
- Bitfinex’s outrageous transaction fees are still unclear.
It Will Happen Again
The much anticipated and criticized EIP-1559 was never meant to resolve the high gas fees. Vitalik Buterin noted the new update will “reduce the rate” of high network fees by creating an automated fee decider called a “priority fee.”
However, network cutbacks will continue to occur as blockchain continues to innovate. A user sent $130 to Ethereum and paid $2.6 million. In contrast, a user moved the equivalent of $2 billion in while only paying $0.78.
What is the reason you should care?
Gas fees on the Ethereum network are still unstable despite the implementation of the “base fee.”
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