Ethereum co-founder Vitalik Buterin said that Layer 2 (L2) transaction fees must be under $0.05 to be truly acceptable. This statement came in response to a Twitter post by Ryan Sean Adams, co-founder of Web3 company Bankless and host of the Bankless podcast, who shared the average transaction fees for some popular Ethereum L2 solutions.

Layer 2s are separate blockchains that extend and scale Ethereum by processing transactions from the Ethereum Mainnet (Layer 1) while aiming to maintain the security and decentralization of the mainnet.

Some layer 2 solutions cover Buterin's suggested transaction fees, while others are relatively more expensive. For example, Aztec Network's transaction fees were around $1.98.

   "I think it needs to be under $0.05 to be truly acceptable. But we're making really good progress and proto-danksharding might be enough to get us there for a while."

Adams shared this screenshot, presumably to counter the growing criticism of Ethereum. Ethereum gas fees have once again been the subject of debate, especially since the network saw a huge spike in gas prices during the minting of Otherdeed non-fungible tokens (NFT) of Yuga Lab's highly anticipated metaverse project "Otherside".

In total, more than $150 million in gas fees was spent during the minting process as users try to secure their place in the next block by participating in a priority gas auction, a process also referred to as a "gas war."

According to a recent report from crypto research firm CoinMetrics, while it is nearly impossible to completely avoid gas wars during NFT minting operations, Yuga Labs could take certain measures to significantly reduce the potential for a massive gas war.

The report stated that Yuga Labs should design a mechanism that would allow the market to decide on the fair price of minting rather than setting a fixed price. Some potential solutions included smart bulk auctions or sweepstakes.

In addition, the company could potentially save millions of cryptocurrencies in transaction fees by optimizing the smart contract. Sharing this view, Will Papper, co-founder of decentralized investment project Syndicate Protocol, said that "the contract has almost zero gas optimization."

will papper

Still, this minting has benefited Ethereum by burning a relatively significant portion of its supply. “The burning of a significant amount of ETH during the minting process is a major event that lowers the overall supply of ETH,” the above report said.