Ethereum Testnet Token Fires 670% and Creates an Issue
CriptoFácil – The GETH token is one of the tokens in the ecosystem, which feeds the Goerli test network. According to CoinGecko, the token recorded an appreciation that surpassed 670% this weekend.
On Saturday, GETH reached the peak of this cycle, reaching $1.60. However, the price soon corrected and is now worth just over $0.31. And this sudden movement is a huge problem for the testnet.
GETH is the token that serves as payment for network gas fees, just like Ether() on the mainnet. As the token skyrockets in price, transaction fees also increase, which makes testing difficult.
In this regard, developers are now avoiding testing their apps due to the more expensive price tag. Also, the fact that GETH is on a tracker like CoinGecko indicates strong demand, something that shouldn’t happen with a testnet.
old problem
According to Marius van der Wijden, one of the developers of Ethereum, the GETH problem is not new. It’s been almost a year now that developers have had discussions on how to fix GETH’s supply and prevent the price from skyrocketing.
For the developer, the solution is relatively simple: let the token die. That is, to abandon testing on the Goerli network and gradually make it useless. In fact, van der Wijden went so far as to say that the network has fulfilled its purpose and therefore should not remain active.
“That’s the intention of all testnets: they should live for a few years. Then it gets harder and harder to sync them, so it’s not very useful,” she said.
According to the developer, with the launch of the Sepolia testnet, it no longer makes sense to keep Goerli. The plan is to slowly phase out Goerli by having users migrate to the new testnet. Sepolia is already running, but it is not yet open to everyone, so the change should occur gradually.
As Sepolia receives new permissions, users will no longer need Goerli. When it loses its usefulness, the demand for GETH tends to fall, reducing its value.
The test networks
Launched in 2019, Goerli is one of several testnets that allow developers to safely test their code before deploying it to the Ethereum mainnet. It is also the oldest operating Ethereum testnet.
To make the test environment as real as possible, he also needed a native token for transaction fees. This token was freely distributed through the so-called faucets and validators that kept the testnet alive.
To speed up distribution to developers, the LayerZero project enabled negotiation between the mainnet and Goerli to help developers. However, this move had the side effect of turning GETH into an object of speculation.
By CriptoFacil