Ledger’s new multisig feature sparks backlash over fees

Ledger, the cryptocurrency hardware wallet maker, has released a new multisig feature. However, the update has received backlash from many crypto users and developers. That’s because Ledger introduced per-transaction fees for the first ￰0￱ feature was released on Thursday, alongside the new Nano Gen5 device and an upgraded Ledger Wallet app, which replaces the old Ledger Live ￰1￱ is acting like a corporation The multisig feature is Ledger’s first integrated system, allowing multiple people to sign and verify ￰2￱ process is handled through the company’s backend instead of relying on third-party tools. Previously, crypto users relied on Specter or Sparrow to handle multisig transactions on Ledger hardware ￰3￱ Ledger’s integrated multisig feature, Specter and Sparrow are open-source tools available for anyone to utilize or ￰4￱ now charges a “Multisig Fee” on top of network ￰5￱ fee is broken down into two parts: a $10 flat fee for standard crypto transfers and a variable fee of 0.05% on token transfers.

“Ledger charges a fee for the secured and facilitated access it provides to these services through Ledger Multisig (‘Transaction Fee’),” explained Ledger on its website FAQ ￰6￱ and security researchers across the crypto sphere have disliked the move, calling it unnecessary and profit-driven. Pcaversaccio, a developer and security researcher from SEAL-911, said Ledger’s new model turns multisig users into a revenue ￰7￱ said the feature turns multisig users into “cash cows.” Pcaversaccio described Ledger as a “single choke point for all crypto so you can squeeze everyone through it.” This approach goes against Ledger’s cypherpunk origins. Sarnavo, an Avalanche ecosystem dev, said the whole crypto community is “frustrated” because of the new ￰8￱ listed other problems, such as Ledger’s closed-source user interface (UI).

Crypto users have no way to verify transaction signing, how data moves, or what is being stored on Ledger’s backend ￰9￱ pointed out another issue — a hidden transaction service used for coordinating multisig ￰10￱ did not disclose the type of data the server handles, which leaves users clueless about their ￰11￱ released the new multisig feature along with clear signing on new devices. However, the original Ledger Nano S is left behind and will not receive those updates because it lacks the required memory storage to convert complex transaction data into readable ￰12￱ released the new features alongside its Nano Gen5 device on ￰13￱ upgraded hardware wallet is priced at $179, way higher than the older Ledger Nano S, which previously sold for around $59.

According to the company, the Nano Gen5 is more than a hardware ￰14￱ acts as a “signer” designed to handle identity verification and transaction approvals in what Ledger calls the artificial intelligence (AI) ￰15￱ Nano Gen5 also comes with new features such as an E-Ink touchscreen, Bluetooth 5.2, USB-C connectivity, and enhanced security ￰16￱ has sold over 6 million hardware wallets, helping crypto users secure billions of ￰17￱ company did not release any official comments or respond to the backlash from the crypto ￰18￱ smartest crypto minds already read our ￰19￱ in? Join them .