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 time. The feature was released on Thursday, alongside the new Nano Gen5 device and an upgraded Ledger Wallet app, which replaces the old Ledger Live application.
Ledger is acting like a corporation
The multisig feature is Ledger’s first integrated system, allowing multiple people to sign and verify transactions. This 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 wallets. Unlike Ledger’s integrated multisig feature, Specter and Sparrow are open-source tools available for anyone to utilize or fork.
Ledger now charges a “Multisig Fee” on top of network fees. The 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 section.
Developers 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 stream. He 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 upgrade.
He 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 servers.
Sarnavo pointed out another issue — a hidden transaction service used for coordinating multisig signatures. Ledger did not disclose the type of data the server handles, which leaves users clueless about their privacy.
Ledger 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 text.
Ledger released the new features alongside its Nano Gen5 device on Thursday. The 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 wallet. It acts as a “signer” designed to handle identity verification and transaction approvals in what Ledger calls the artificial intelligence (AI) era.
The Nano Gen5 also comes with new features such as an E-Ink touchscreen, Bluetooth 5.2, USB-C connectivity, and enhanced security chips.
Ledger has sold over 6 million hardware wallets, helping crypto users secure billions of dollars. The company did not release any official comments or respond to the backlash from the crypto community.
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