In May of 2016, exactly one year ago, Ethereum’s token ether was valued at around $10. That meant freelancers on the Ethereum-based job market platform Ethlance had to pay a little more than $1 or 10 percent of the ETH price, to set up smart contracts for their profiles. However, ETH is valued around $90 at the time of writing, a price that is nine times higher than ETH’s value in May 2016. The rapid surge in the market of Ethereum made it increasingly expensive for applications and their users to set up smart contracts.
At the beginning of May, one of the developers of Ethlance better known as Madvas on various online communities revealed that freelancers on Ethlance were required to pay around $5 to $8 on average; one freelancer who wanted to create a profile page was charged $7.79 in ETH or gas.
As shown below, Ethlance is a platform wherein freelancers can upload their profiles in smart contracts and broadcast them to the Ethereum blockchain for employees to see. Within the smart contract, freelancers can include their skills, overview, biography, specialty, name, and so on.
According to Madvas, who expressed his concerns over the increasing gas costs for decentralized applications and users, one of the users had to pay $7.79 in ETH or gas to submit and broadcast his smart contract. Madvas wrote:
“Gas fees would cost him in worst case $7.79. On average, around 50-60 percent of that. In any case, it is way too much. Back when ETH was about $10, max fee for creating freelancer profile was little more than $1. Creating freelancer profile is most gas costly transaction on Ethlance, because it has many inputs, but max fee of $7.79 is certainly not mass-adoption-ready price.”
The issue noted by Madvas