An Ethereum-based project has been forced to discontinue its development due to rising gas prices, as the cost of transacting on the blockchain network continues to rise.
The official Twitter account for the social media token project, Unite, ad on February 10 that the project was no longer in active development, and added that the original idea of the project had been rendered unviable by the recent increase in the price of gas. Average cost of using Ethereum increased by 35,600% since January 2020:
“Unfortunately, we are no longer actively developing Unite. Gas prices indicate that Unite’s original idea is not feasible and after several months of work and many conversations we have decided not to build a social token platform on an L2. Thanks for the support!”
Ethereum’s transaction costs reached new highs of $ 25.10 on February 5, before falling back to $ 16.40 two days later.. But the momentum that caused the number of Ether (ETH) transactions to triple in 2020 (from 418,000 to 1.26 million) continued over the past 48 hours, since average transaction costs exceeded $ 24 once again, according to data from Bitinfocharts.com.
Unite aimed to allow social media users on sites like Twitter and Discord to distribute Ethereum ERC-20 tokens to their audience and community.. The project stated that it would not be based on a layer 2 solution, referring to projects built on Ethereum sidechains that often use radically different transaction mechanisms and fee pricing mechanisms.
Although some have benefited from the increasing popularity of Ethereum, the need for a blockchain ecosystem that does not 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 seek to scale the blockchain network to many orders of magnitude above its current capacity, while a pending improvement proposal aims to restructure how gas prices are calculated in ETH.