Ledger's Multisig Update Draws Criticism for Fees and Lack of Transparency
Ledger's Multisig Update Draws Criticism for Fees and Lack of Transparency
TL;DR: Ledger's new multisig adds fees of $10 per transfer and 0.05% for ERC-20 tokens. Developers call it a “cash-cow” move and criticize lack of transparency. The feature excludes Nano S users, raising concerns over self-custody access. Ledger's latest update was meant to showcase innovation but instead stirred controversy.
Article Summary
Ledger's controversial multisig update has sparked widespread criticism within the cryptocurrency community, introducing significant fees that developers are calling a predatory "cash-cow" strategy. The hardware wallet giant now charges $10 per transfer plus 0.05% fees for ERC-20 token transactions through its new multisignature feature, raising serious concerns about affordable self-custody solutions in the digital asset space. The blockchain security company's decision to exclude Nano S users from accessing the multisig functionality has intensified backlash from cryptocurrency enthusiasts who prioritize decentralized finance (DeFi) accessibility. Industry developers are particularly vocal about Ledger's lack of transparency regarding the fee structure, questioning whether these charges align with Bitcoin and crypto's foundational principles of financial sovereignty. This pricing model could significantly impact users managing large cryptocurrency portfolios, as the percentage-based fees on ERC-20 tokens may accumulate substantial costs over time. The controversy highlights growing tensions between hardware wallet manufacturers and the crypto community over monetization strategies that potentially compromise the democratic nature of blockchain technology and self-custody solutions.
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