Ethereum Transaction Fees to Miners Surpassed the cost of maintaining the Network Last Month

Michael LaVere
  • Ethereum transaction fees paid to miners surpassed uncle rewards last month. 
  • Users paid more than the cost of maintaining ethereum's network. 

Ethereum transaction fees paid to miners surpassed the cost of maintaining the network last month.

According to a series of tweets by Ankit Chiplunkar, research lead at The Token Analyst, Ethereum transaction fees paid to miners exceeded the uncle reward in March 2020. Ethereum users paid 26,100 ETH ($4.4 million) in transaction fees to miners last month versus the uncle reward of 20,400 ETH ($3.4 million). 

Chiplunkar explained the discrepancy between miner fees and the uncle reward, saying that users are paying more than the cost of maintaining ethereum’s network on a 15-second blocktime. 

The research lead also showed that fees paid by smart contract transactions have outweighed basic ether transactions since January 2019. Last month, smart contract fees were 8.6 times greater than those of regular transactions on ethereum’s network. 

One user pointed out the discrepancy in last month’s miner fees and uncle reward may have represented an anomaly, as the crypto markets experienced one of the worst single days of losses on Mar. 12. 

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