Recently, the Ethereum Network has experienced a lag in transactions. To add to this problem, it is believed that within the past two to four days, namely between June 30th and July 2nd, transaction fees soared to about $1.
Due to the congestion, Binance was forced to increase GAS prices for trading processes to 180 Gwei, which is equivalent to 0.00000018 Ether. This, however, does not apply to withdrawal fees.
Co-Founder of Ethereum, Vitalik Buterin made it his responsibility to respond to the current issue at hand. In doing so, he proposed a different method that would possibly earn extra for miners, while maximizing GAS price.
In particular, Buterin said,
“If you value a transaction getting included right now at $1, you would be willing to bid anything up to $1, but if everyone else is bidding $0.05, then you could keep more money by biding $0.08 instead.”
Simply put, Buterin’s suggested that users would bid a price that they are comfortable with for the “inclusion of their transaction” and upon finalizing the auction, miners will take the lowest of fees, which will be used for everyone. This might be problematic, as users are highly unlikely to choose a fee that is above average, but based on Buterin’s beliefs, it could be a feasible option.
Since miners will be able to choose prices and the number of blocks that transactions will take place in, they will be able to make slightly more. This, according to Buterin, will help to lessen transaction fees altogether.