Testnet Ether on Goerli has skyrocketed 673%, developers propose new plan

Testnet Ether on Goerli has skyrocketed 673%, developers propose new plan

The Goerli testnet is a popular cross-customer proof-of-authority testnet for Ethereum, but is otherwise a completely separate entity from the Ethereum ledger. It was established in March 2019. Applications are tested before their final deployment on the mainnet.

Traders can also send tokens from other chains to Goerli. The tokens used are the testnet version of the actual Ether and are intended to be free for developers.

Goerli's distribution method for native ETH (GoETH) has been a major point of contention as its distribution is primarily in the hands of a few validator units. They distribute a small amount of GoETH. The traditional approach uses services called faucets to obtain testnet tokens, which is considered inconvenient by many.

New approach

In response, a cross-chain platform LayerZero designed a way for Goerlis testnet Ether to be traded and exchanged between the Ethereum mainnet and the testnet. The focus is on enabling developers to purchase testnet Ether directly from the decentralized exchange. Uniswap.

LayerZero developers have launched a cross-chain liquidity pool that allows users to purchase GoETH to address concerns about acquiring the token. However, critics have warned against the new approach of monetizing a testnet's native currency, believing that such a mechanism will ultimately threaten the free nature of the testnet.

In fact, the price of testnet Ether rose to $1.60 on Saturday, rising more than 673% since trading at $0.15 late last week. The token has since lost much of its value but is still trading near $0.31.

Uniswap founder Hayden Adams called out those who buy the token, warning that it will lose support on its latest testnet tweet,

"If you're buying Goerli eth, why the hell are you doing it? You all know it's an outdated and soon to be completely unsupported testnet, right? Still, it's always fun to see strange things happening on Uniswap."

Following the development, Polygon's Chief Information Security Officer Mudit Gupta also weighed in and stated,

"Goerli eth is trading for ~$0.69. Not nice. Testnet Ether is supposed to be free, but is priced by speculators. Keyboard warriors will tell you the developers are buying it, but no, they aren't. Maybe 0.1% are buying for consumption. This is the beginning of the end for the Goerli testnet. It has served us well."

Possible solution

Acquiring testnet Ether has become a major problem. To counteract this, a solution has now been found suggested by Ethereum core developer Tim Beiko to develop a new testnet called Holli. This, expected to be released later this year, is intended to improve the testing environment for client and application developers and node operators.

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