05-04-2022 icon

Vitalik Buterin pushes for cheaper Layer 2 fees

By Lucy Adegbe

Vitalik Buterin, the co-founder of Ethereum has expressed displeasure at the high fees charged by layer 2 scaling protocols. His view was captured in his response to a tweet that mentioned several protocols and the amount they charged per transaction.

Top of the list was Arbitrum which charges $0.85 and at the bottom was Metis Network which charges its users $0.02.

Reacting, Vitalik said it was high time networks configured their Ethereum transaction fees to less than $0.05, adding that while the market is really progressing, leveraging proto-danksharding might help to accomplish this in the meantime.

Ethereum debuted the proto-danksharding back in February when its network was upgraded. The upgrade, at the time, was targeted at increasing sharding on the platform, as well as adding a bio-carrying transaction update which contains more data that the EVM (Ethereum Virtual Machine) cannot access on the network.

As more layer 2 solutions continue to spring forth, so also is the total value of assets locked in them. It is estimated that $6 billion is the total value locked in layer 2 protocols. Even though Arbitrum is one of the most expensive layer 2 solutions, it has the most TVL representing over 57%, followed by dYdX with 16% representing around $1 billion.