An Ethereum-based project had to stop development due to rising gas prices as the costs of transactions in the blockchain continue to reach new highs.
The official Twitter account for the Unite social media token project announced on February 10th that the project is no longer in active development, adding that the original idea for the project was due to the recent surge in Gas prices have not become realizable. The average cost of using Ethereum has increased 35,600% since January 2020:
“Unfortunately we are no longer actively developing Unite. Due to the gas prices, the original idea for Unite is not feasible. After several months of work and many discussions, we decided against building a social token platform on an L2. Thanks for the support!”
Ethereum’s transaction costs hit new highs of $ 25.10 on February 5, before declining to $ 16.40 two days later. The dynamic in which the number of Ether (ETH) transactions more than tripled in 2020 (from 418,000 to 1.26 million) has continued over the past 48 hours as average transaction costs, according to Bitinfocharts.com again exceeded USD 24.
Unite aims to enable social media users on sites like Twitter and Discord to distribute Ethereum ERC-20 tokens to their target audience and community. The project stated that it neglects to build on a Layer 2 solution and referred to projects that are based on Ethereum sidechains and often use radically different transaction mechanisms and fee pricing mechanisms.
While some have benefited from the growing popularity of Ethereum, the need for a blockchain ecosystem that doesn’t collapse under the weight of its own success has not gone unnoticed by developers. Ethereum 2.0, the next major update in the evolution of Ethereum, will attempt to scale the blockchain to many orders of magnitude above its current capacity, while a pending suggestion for improvement aims to restructure the calculation of ETH gas prices.