FCoin GPM Listing Competition Acutely Clogs Ethereum
It’s not CryptoKitties. It’s not the Augur launch. The latest Ethereum network congestion comes via Chinese startup exchange FCoin, whose “cumulative deposit number ranking” competition for FCoin GPM listings has incentivized some smaller ERC20 projects to send droves of deposits to the platform. Accordingly, acute gas price shocks have resulted, with rising gas prices and transaction times miffing Ethereum users not participating in the contest.
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With Deposits Used in Contest, Transactions Mount
The launch of the FCoin Growth Project Market, or FCoin GPM, has sent several smaller token projects scrambling to partake in the platform’s deposit-based listing competition. As such, ERC20 deposits to the exchange have exploded as July began, in line with the competition’s start.
The so-called “cumulative deposit number ranking” system motivated numerous projects to enlist their communities in sending masses of their respective tokens to FCoin accounts. And some projects have been coordinating these transactions with high gas prices in order to make their deposits faster than competitors. The hordes of resulting transactions have caused upward slippage in gas prices and transaction times on the wider Ethereum network.
Man FCoin.. seriously.. do you have to make policies to clog up the ETH network? Just wanted to send a transaction today and was wondering why it wasn't getting through…
— boxmining (@boxmining) July 2, 2018
Many in the space initially had no idea why the congestion was occurring, but FCoin’s competition was eventually pinpointed and word quickly made the rounds on Twitter and Reddit.
Checking Out the ‘Gas Guzzlers’
At one point in the past 24 hours, the ETH Gas Station service revealed how as many as seven of the the top 10 “Gas Burners” on the site’s Top 10 ETH Contracts By Transaction Count Over the Last 1,500 Blocks list were token projects participating in FCoin’s deposit competition.
For instance, per the FCoin GPM tally page, a few projects have already won listing spots, with one of these winners being the GRAM (GRAM) token. Interestingly, at press time, the token’s Etherscan page shows that the latest 900 pages of the project’s current total of ~973 pages of transactions were submitted in the last 48 hours — an indication of an unprecedented explosion of activity for the play, i.e. FCoin deposit “voting.” Similar activity can be seen on the Etherscan pages of other participating projects, such as the Hash Power Token (HPC) page.
Per the FCoin GPM listing contest rules page, the competition doesn’t seem to have a defined end date for now, as the platform’s team has said the “duration of this listing rule is subject to future announcements.”
That means the Ethereum congestion at hand is likely to last as long as projects are pumping deposits onto FCoin. Of course, it should be noted that Ethereum transactions will still go through right now on lower gas prices, albeit slower than when such congestion isn’t present.
Still, the contest, if it continues for the foreseeable future, may prove to be yet another intensifying factor in the coming July 9th Augur project launch, which I wrote about last week. Specifically, I reported on how Corey Miller of Blocktower Capital had theorized the Augur launch might be bringing considerable acute congestion to Ethereum if there’s even ““marginal demand for Augur post-launch.”
As I said in that post, which applies equally here: Ethereum’s promising but still-forming scaling solutions can’t come fast enough. If congestion continues to mount, it’ll be interesting to watch how the larger cryptoverse and Ethereum’s developers respond.
Buterin Highlights One Proposal
Amid the growing recent gas price discussions, Ethereum co-creator Vitalik Buterin noted on Twitter a proposal “for improving stability and user-friendliness of gas price markets.”
One proposal for improving stability and user-friendliness of gas price markets: https://t.co/1AXsan7u9c
Not dependent on Casper, sharding or abstraction; if well reviewed and people agree it's a significant improvement, it could technically be implemented as a change to mainnet
— Vitalik "Not giving away ETH" Buterin (@VitalikButerin) July 2, 2018
Buterin said the proposal, if widely accepted, could even “technically be implemented as a change on the mainnet.” The proposal’s future will be another thread to keep an eye on in the months ahead.
What’s your take? What do you think about a deposit-based listing competition? Sound off in the comments below.
Images via FCoin, Pixabay