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The high transaction fees are intentional and a symptom of a sick system which allows people to profit from inefficiency. The higher the transaction fees, the

The high transaction fees are intentional and a symptom of a sick system which allows people to profit from inefficiency. The higher the transaction fees, the more validators earn. There is no incentive to build tech which will lower transaction fees, even though it would enable practical use cases. Ethereum community is not interested in value creation because they know that value creation doesn't pay. They can earn more money just monopolizing media attention, attracting new investors and lobbying (aka corrupting) politicians. Having worked in the industry, I've witnessed how they literally suppress innovations which would result in more scalability and lower fees. They only embrace solutions that are flawed by design to create an illusion that they're trying. Billions of dollars are literally wasted just to maintain the illusion. I don't know where all that money is coming from. The crypto folks are clearly right about one thing; the monetary system is broken... But they seem to be making more money keeping it broken than fixing it.

yokem55 3y ago
> The higher the transaction fees, the more validators earn. Not really. 95% of the gas fees get burned and do not go to the validators at all. Only the 'tip' or 'priority fee' goes to the validators and even that is barely anything. Most of the transaction related income validators get is from MEV - basically bribes to order transactions in the block in a particular manner allowing arbitrageurs to extract additional value. These bribes are somewhat correlated to the level of the gas fees, but not always.
- jongjong 3y ago
  Any Proof of Stake system, by its design will reward validators in accordance to supply and demand for compute. Transaction and compute fees underpin the entire security of PoS. The fees necessarily grow proportionally to demand for compute, because, in a fully replicated architecture such as Ethereum, supply of compute is limited by the slowest allowable node in the network. Since supply of compute is inelastic, it means that demand for compute fully determines fees + MEV. Any effort to scale the network would result in supply elasticity and would therefore cause fees + MEV to drop which would go against the interests of those who provide the validation service and earn the fees + MEV.
hanniabu 3y ago
> Having worked in the industry, I've witnessed how they literally suppress innovations which would result in more scalability and lower fees False until proven with sources. I'm involved with ethstaker and follow core development closely and have never seen anything like this.
- jongjong 3y ago
  You'd gave to look outside of Ethereum to see the projects being suppressed and cancelled. Ethereum cannot scale due to its complexity with smart contracts and so crypto developers are being pulled towards it to prevent them from working on other projects with more scalable architectures.

yokem55 3y ago

> The higher the transaction fees, the more validators earn. Not really. 95% of the gas fees get burned and do not go to the validators at all. Only the 'tip' or 'priority fee' goes to the validators and even that is barely anything. Most of the transaction related income validators get is from MEV - basically bribes to order transactions in the block in a particular manner allowing arbitrageurs to extract additional value. These bribes are somewhat correlated to the level of the gas fees, but not always.

jongjong 3y ago
Any Proof of Stake system, by its design will reward validators in accordance to supply and demand for compute. Transaction and compute fees underpin the entire security of PoS. The fees necessarily grow proportionally to demand for compute, because, in a fully replicated architecture such as Ethereum, supply of compute is limited by the slowest allowable node in the network. Since supply of compute is inelastic, it means that demand for compute fully determines fees + MEV. Any effort to scale the network would result in supply elasticity and would therefore cause fees + MEV to drop which would go against the interests of those who provide the validation service and earn the fees + MEV.

hanniabu 3y ago

> Having worked in the industry, I've witnessed how they literally suppress innovations which would result in more scalability and lower fees False until proven with sources. I'm involved with ethstaker and follow core development closely and have never seen anything like this.

jongjong 3y ago
You'd gave to look outside of Ethereum to see the projects being suppressed and cancelled. Ethereum cannot scale due to its complexity with smart contracts and so crypto developers are being pulled towards it to prevent them from working on other projects with more scalable architectures.