Mysterious Token Airdrop Takes up Nearly 60% of Ethereum's Network

Francisco Memoria

The airdrop of a mysterious ERC-20 token on the Ethereum network has seemingly been taking up 60% of its transactions and taking up most of its capacity unit, gas, in the last few days. The airdrop appears to be taking place to only draw attention.

According to Etherscan data, an ERC-20 token called More Gold Coin (MGC) is being airdropped to thousands of Ethereum addresses for no apparent reason. The airdrop is taking up most of the ETH network’s transactions and gas – a unit that helps calculate fees that measures how much “work” an action takes to perform.

Airdropping address taking 59% of Ethereum's txs

This doesn’t mean transactions on the Ethereum network are skyrocketing, TrustNodes claims, as gas and transacting capacity aren’t the same. The amount of gas used, as mentioned above, depends on the amount of “work” that needs to be done, which means one transaction can consume an amount of gas equal to 100 transactions.

Ethereum transactions over the last 24-hour period have, in fact, fallen as the token’s airdrop is performing computationally intensive calculations, which are taking most of the network’s resources. While the number of transactions dropped, gas usage surged to a new all-time high.

Ethereum Gas usage over time

Transaction fees on the ETH network are still fairly low, however, although these depend on the action being performing. Sending some ether has a rather low cost, while sending a non-fungible token through the network may cost more.

At press time the airdrop is still ongoing, although it’s currently only consuming about 6% of the Ethereum network’s resources. Its purpose remains unknown as the MGC token appears to not even have a website.

MakerDAO Proposes Increasing Dai Debt Ceiling to $120 Million

  • Maker Foundation has proposed raising the debt ceiling on DAI to $120 million.
  • DeFi loan platform reached its previous ceiling of $100 million on November 6.

MakerDAO has proposed a new ceiling for Dai after hitting its debt ceiling of $100 million on Nov. 6. 

MakerDAO, which acts as a loan system administered by the Maker Foundation, reached its debt ceiling of $100 million worth of Dai and issued and more than $339 million ether locked up in collateral. Dai serves as a stablecoin used to issue and settle debts on the loan system. 

In response to reaching the milestone, the Maker Foundation has proposed increasing the debt ceiling to 120 million Dai, which will have to first be voted upon by holders of MKR governance tokens. 

Steven Becker, president of the Maker Foundation, told CoinDesk

MakerDAO has hit that limit and no more [Dai] can be generated until that debt limit is increased.

MakerDAO’s debt ceiling was previously raised from 50 million to 100 million Dai in July 2018.

The decentralized cryptocurrency loan platform has experienced rapid growth during 2019, with the size of loans also growing. According to LoanScan, at least five outstanding loans total more than $3 million Dai, with two loans totaling over $8 million each.

Featured Image Credit: Photo via Pixabay.com