EIP 3298 – Vitalik Buterin goes to war against gas tokens (CHI and GasToken)

Debated update – Ethereum’s fees have been at their highest for several months. To partially remedy this problem, Vitalik Buterin wishes to once again modify the operation of the gas. Make way for EIP 3298!

EIP 3298: near the end of gas tokens?

Last week, Vitalik Buterin once again made a name for himself by proposing a new modification of the Ethereum protocol through the EIP-3298 .

His proposal aims to modify the operation of the Solidity SSTORE and SELFDESTRUCT functions . Although initially implemented to encourage developers to “write [develop] applications that practice ‚good state hygiene’” , these functions have also enabled the emergence of gas tokens.

As a reminder, gas tokens are used to store gas in a smart contract when its price is low thanks to the SSTORE method. It can also be used during periods of rising costs thanks to the SELFDESTRUCT method.

In his proposal, Vitalik Buterin identifies 2 major problems with this method:

Gas tokens exacerbate the size of states on the chain, inefficiently blocking the use of gas on the chain;
Gas reimbursement actions increase the variance of block size . A situation that can encourage peaks in use.
In practice this EIP could be integrated into the hard fork London, which should also introduce the EIP-1559 .

Immediate repercussions

It didn’t take long to see the repercussions of this announcement.

Indeed, the CHI gas token saw its price drop by almost 40% following the publication of the EIP, from 5.26 to 3.30 dollars. The same goes for the GasToken (GT2) which has lost almost 50% of its value.

The average cost of transactions on Ethereum also seems to have been impacted by this announcement. Indeed, it is a safe bet that the probable disappearance of these tokens has convinced some users to stop producing them , in fact reducing the use of the blockchain.

Discussions will soon be held by the developers to define if this EIP will be deployed and under what timeframe. But as it stands, it is difficult to predict a bright future for him. At worst, it will just be abandoned in favor of EIP 1559 only. But first we’ll have to see how things are going.