Vitalik Buterin Proposes New Fee Schedule for ENS Domains!

Ethereum Founder Vitalik Buterin has proposed a new fee schedule for Ethereum Name Services. The proposal briefly includes a recurring fee schedule for all ENS domains. Vitalik also claimed that the ENS Domain system does not collect enough revenue for the ENS Decentralized Autonomous Organization to operate effectively on critical public goods.

The crypto billionaire explained that selling domains so cheaply causes losses. He also stated that the current ENS allocation system for this is not the appropriate and most economical way to allocate domains. The current total fee for registering a 5-letter domain is only $5 per year. According to Vitalik Buterin, the revenue from the sale of Domains is insufficient to develop the ecosystem. Selling these domains at discounted prices was not a problem for ENS investors who bought them in 2017. It is still simple for people to buy them now. However, Vitalik is concerned that speculative buying and selling of ENS domains could easily affect the ENS DAO ecosystem in the future. 'The status quo is also bad in terms of fairness,' Vitalik said. In 2017 it was great for investors to buy all domains cheaply. In 2022, it's fine. But the results will seriously hamper the system in 2050,' he said. While the standard rate of the ENS recurring fee is fixed at $5 (except for 4-letter domains, which go for $160 per year), Vitalik wants the maintenance fee to be linked to the market demand for Domain Names. The proposal also means that the annual maintenance fee for the domain will fluctuate according to the direction of the market. The price will initially be charged to bidders. This proposal would stimulate the markets by giving everyone a chance to bid for a specific domain name. From Vitalik's point of view, the offer should remain open for 4 weeks or more. If it stays, the value of the domain will increase. Renewed Prices! A bidder will send their bid price as a smart contract during the bidding process. The owner of the domain will have the option to reject or accept the bidder's offer. If the bidder withdraws the offer, they will have to make a higher offer next time. Also, if the bidder bids a significant amount for the domain, the owner will be able to sell the Domain to the bidder for much more than the Domain is worth. This release includes a feature that could be important for existing ENS Domain owners. According to Vitalik, normal pricing based on capped demand ensures that a no-bid domain name will not pay an annual fee. In addition, existing offers will be able to raise the Domain fee to a maximum threshold of $5. This concept means that domainers would pay nominal annual costs to protect their domain names. Vitalik's proposals have been interpreted as a clear indication of neutrality in ENS DAO allocations.   Source: nfxhaber.com Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!