VMPX, a recently launched ERC-20 token, is responsible for more than 30% of all Ethereum (ETH) burns in the last 24 hours, according to data of Ultrasound.money.
Software engineer 0xCygaar first drew attention to the project, claiming his minting contract served no purpose except to increase the overall use of gas from the grid.
“The main consumer of ETH gas is this contract where users make validators run useless/unnecessary code just to increase overall gas usage. People are literally burning their money to raise gas rates for everyone else.”
Qedk, a smart contract engineer at Polygon (MATIC), confirmed this, adding that the ERC-20 token would make users spend more gas if they wanted to mint more tokens.
According tweets From project founder Jack Levin, VMPX is the first BRC-20 token pegged to Ethereum’s ERC-20 token. The project’s website claims its supply is 108.62 million, but does not provide additional information on its utility.
VMPX consumed nearly $3 million in gas fees
Meanwhile, Etherscan data shows that the VMPX mint contract consumed more than 1500 ETH, around $3 million, in gas fees during the last 24 hours. This represents around 30% of all gas fees spent during the period, on top of those generated by the Uniswap (UNI) decentralized exchange.
Harrison, the co-founder of PopPunk, he pointed that those who minted the token paid gas fees of up to 1.36ETH.
EigenPhi, a DeFi data platform, corroborated Harrison’s statement, adding that an average VMPX minting transaction was 0.167ETH, around $317 per tx.
This high network activity caused Ethereum network fees to spike as much as 76.3 Gwei during the reporting period, according to Ultrasound.money.
A representative of Push Protocol, the Ethereum messaging service, said CryptoSlate:
Gas fees still play a vital role in the interaction with Ethereum and is probably one of the reasons why projects are moving to L2 or preferring off-chain but verifiable executions.”
Release of New ERC-20 VMPX Token Triggers Ethereum Consumption Spike, Consumes $3M in Gas Fees in 24 Hours, Appeared First on CryptoSlate.
