Ethereum (ETH) is Upgrading to Allow Users to Pay Fees with Shiba Inu (SHIB)

This will be made possible through the upcoming Pectra hard fork, a significant upgrade that combines 11 Ethereum Improvement Proposals (EIPs) into a single package.

Shiba Inu could be used to pay for gas fees on Ethereum following a major upgrade that is expected to introduce the ability to pay for transactions in ERC-20 tokens.

The gas fee possibilities are arising with the upcoming Pectra hard fork, which will combine 11 Ethereum Improvement Proposals (EIPs) into a single package.

Pectra's Account Abstraction Feature

The Pectra upgrade is expected to bring several improvements to staking efficiency, wallet usability, and scalability to the Ethereum network. It is set to arrive in March 2025.

The upgrade will also bring an account abstraction feature that aims to improve wallet usability by making them more intuitive. With this feature, Ethereum users will be able to pay for gas fees using alternative ERC-20 tokens, specifically stablecoins, instead of being limited to the network’s native token, ETH.

This initiative will initially support ERC-20 stablecoins like USD Coin (USDC) and Dai (DAI). Interestingly, speculation suggests that the Ethereum development team could decide to support other ERC-20 tokens, including those from the Shiba Inu ecosystem, such as SHIB, BONE, and TREAT.

If this happens, Ethereum users will be able to pay gas fees using Shiba Inu for token transfer, NFT trading, and decentralized application (dApp) usage transactions.

It is worth mentioning that besides stablecoins, the Ethereum development team has not yet confirmed plans to support other ERC-20 tokens for gas fee payments.

Last year, Shiba Inu's marketing lead Lucie mentioned that Ethereum users cannot pay gas fees with SHIB, citing technical and compatibility issues.

However, the upcoming launch of Pectra and the account abstraction feature present an opportunity for Ethereum users to pay transaction costs in SHIB, BONE, and TREAT.

Account Abstraction Explained Simply

Right now, if a user wants to send a token, trade an NFT, or use a DApp, they need to have a small amount of ETH in their wallet to pay for gas fees.

With the Pectra upgrade, Ethereum is introducing a new system where users can choose how they want to pay for transactions. They can use a "gas token" of their preference, such as a stablecoin like USDC or Dai, or even a meme coin like Shiba Inu.

This is a significant change that could have a big impact on the Ethereum ecosystem. It will make the network more accessible and user-friendly, which could lead to increased adoption.

Pectra's Status

The Pectra hard fork is getting closer to its highly anticipated launch.

Ethereum's development team rolled out the upgrade on the Holesky testnet this week, on February 24. However, the upgrade failed to finalize as expected, marking a rare occurrence for the network.

In a follow-up statement, the Ethereum development team explained that Pectra's finality issue on Holesky was severe but manageable. Despite this setback, the team is pressing onward with the upgrade, with Pectra's next testnet on Sepolia set to launch on its scheduled date, March 5.

According to sources, Pectra might arrive on the Ethereum mainnet in early April 2025 if the upgrade encounters no major hitches.

Moreover, Pectra will also bring several other noteworthy upgrades, such as raising Ethereum validators' staking limit from 32 ETH to 2,048 ETH. It will also enhance smart contract functionality, optimize storage and validation, and make Layer-2 rollups more competitive.

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