Address Ethereum Gas Fees for IDO's

Hello,

I would like to bring forth the issue of Ethereum gas on the Thorstarter DAO.

As it stands as of the time of this post Ethereum gas is hovering above 100 gwei on average, as seen in this chart here:

Ethereum Gas Price Charts & Historical Gas Fees – ethereumprice

I believe its reasonable to assume that these fees will not go down significantly in the near future as we are entering a popular seasonal period for Ethereum as we can see on the yearly chart here:

Ethereum Average Gas Price (ycharts.com)

combined with the current price of Ethereum at an all-time-high ($4000+ USD) the barrier to entry for Ethereum transactions has grown too great to place the burden of entry on the public or interested private individuals.

I believe the DAO should work out either compensation for fees, paid out in XRUNE or IDO tokens or work out a non-Ethereum based solution for IDO launches. As it stands right now for an interested individual to participate in an IDO they must commit at minimum 3 Ethereum transactions being:

  1. Buy XRUNE (About $250 USD at the time of writing)
  2. Stake XRUNE or LPOOL (About $350 USD at the time of writing)
  3. Exchange XRUNE for IDO coin on IDO launch (About ???/$350 USD at time of writing)

I will not get into other scenarios however the base fee for entry into an IDO investment is between $900-$1000 USD for any new DAO Member.

This immediately creates a barrier of entry to only De-Fi players with significant capital which on the Ethereum chain there are many such players.

For those who had missed out on prolific crypto runs however and for the future of the DAO this is a significant risk for every IDO run with such fees.

For starters it creates an environment where only gamers and players are willing to pick up the token, leaving less good value tokens in the hands of supporters of the project. This can lead to poor distributions in token value with a few players owning the majority of tokens.

This is compounded because players with little capital that even are able to participate are incentivized to sell their IDO tokens at lower prices to compensate for the capital they invested in the Ethereum gas (because they will need gas in the future for various reasons, like future IDOs).

This dampens the networking effect of the DAO resulting in fewer rewards and yields overall for all players involved. After all, that capital would be more efficient going to the IDO’s, XRUNE liquidity, and DAO investments than paying Ethereum miners and Stakers.

Already across the DAO’s Telegram, Discord, and other chat rooms I see DAO members raise concerns about the gas fees and their inability to partake in the DAO or project.

TL DR;

  1. Gas fees are too high
  2. The fees are hurting Thorstarter and its IDO launches
  3. Thorstarter should either reimburse DAO members in XRUNE, or my personal favourite is reimbursement in vXRUNE, or IDO Tokens to compensate gas cost and incentivize smaller players to join the DAO and invest in IDO’s
  4. This will also create an incentive for Thorstarter to seek non-Ethereum based solutions for it’s smart contracts to increase the amount of capital available to Thorstarter and the DAO.

Update:

Thorstarter has announced the following that should help with GAS issues:

native XRUNE on Terra
Cex listing
Staking and Rewards for Terra XRUNE
500% APY announcement for RUNE-XRUNE LP on thorswap

would still like to hear others’ ideas and opinions on the issue.

6 Likes

please tackle this problem… it doesn’t make sense to pay this much to get similar amount back from IDO’s

I am wondering how this “500% APY announcement for RUNE-XRUNE LP on thorswap” is a solution… it still going to cost so much $'s using ETH to stake, and update all that … unless this is also coming from Terra.

1 Like

Would love to invest, but Gas fees just can not be justified.

1 Like

Humankind
买椟还珠

The gas fee is surprisingly high, I spent $400 to participate in the Nov.1rd Thor launch, but i got nothing,Very bad experience,Must find a solution

2 Likes

A gas fee proposal by Thornor and DexThor has been submitted and taken into consideration in upcoming improvements to Eth-based launches.

Additionally, we are successfully bridging to other low-fee chains: Terra, Fantom, Polygon.