Rising gas fees on the Ethereum blockchain is giving users and developers a reason to worry. Over the past year, Ether transaction fees have surged by over 35,000%, and this has forced one social media token project to close shop.
As reported by BTC PEERS, the average gas fee peaked at over $25 on February 5. As of press time, the average transaction fee was had dropped to $18.43. This is a huge spike when compared with an average fee of $0.13 a year ago.
The Ethereum-based social media token project, Unite, announced yesterday that it was closing shop due to rising gas fees. The Unite team wrote:
We are unfortunately no longer actively developing Unite. Gas prices mean the original idea for Unite isn't feasible and after several months of work and many conversations we've decided against building a social token platform on a L2. Thank you for the support!
Unite was hoping to allow users of social media platforms like Discord and Twitter to issue ERC-20 tokens.
Whilst the team did not disclose whether they’ll resume development if transaction fees drop, they were clear enough to state that they were not going to build on a layer2 solution.