Ledger has introduced transaction fees to its Multisig app, igniting significant backlash among users and developers. The update coincides with the launch of the new Nano Gen5 device and a rebranded Ledger Wallet application, marking a pivotal moment for the company in the competitive cryptocurrency landscape. While Ledger positions these changes as necessary for infrastructure and security, critics argue they threaten the principles of self-custody.
New Fees for Multisig Transactions
The Multisig app now imposes a $10 flat fee per transaction, alongside a 0.05% variable fee for token transfers, not including network gas costs. This move has prompted immediate criticism across various cryptocurrency social media platforms and industry publications. Developers have voiced concerns that the new pricing model may lead to increased centralization of self-custody, undermining the core values of decentralized finance.
Ethereum developer pcaversaccio criticized Ledger for creating a “single choke point” in its wallet interface, despite acknowledging the technical improvements. The company’s Chief Technology Officer, Charles Guillemet, later clarified that previous references to Multisig being free were incorrect, attributing it to a typographical error. Industry analysts have expressed apprehension regarding the implications of a closed coordination layer on transparency, even as the underlying Safe protocol remains open-source.
Product Launch and Competitive Landscape
In conjunction with the fee changes, Ledger has rebranded its companion app from Ledger Live to Ledger Wallet and unveiled the Nano Gen5, which retails for $179. The new device features an E Ink touchscreen, Bluetooth 5.2, and NFC capabilities, aimed at enhancing user experience while broadening its application beyond cryptocurrency transactions to encompass identity verification and authorization.
Ledger claims to have sold over 8 million devices, securing more than 20% of global cryptocurrency assets. The company asserts that no Ledger device has been successfully hacked in real-world scenarios. Despite this, security researchers warn that hardware security does not eliminate risks associated with social engineering tactics, such as phishing. According to cybersecurity firm Kaspersky, users remain vulnerable if they inadvertently disclose seed phrases or authorize malicious transactions.
Competition in the cryptocurrency hardware wallet market has intensified. Trezor recently announced its Safe 7 device, which includes a transparent, auditable secure element and a “quantum-secure” update architecture. This development highlights the ongoing challenge of balancing transparency, usability, and security in the evolving digital asset space.
Critics of Ledger’s Multisig update note that it does not support older Nano S devices, which lack the memory capacity for advanced signing features. As a result, some users are compelled to upgrade to newer hardware or explore alternative coordinators. For those who prefer open-source solutions, platforms like Specter Desktop and Sparrow Wallet offer multisig coordination while supporting Ledger devices. Additionally, Ledger has provided documentation for setting up multisig accounts for teams and decentralized autonomous organizations (DAOs) globally.
The introduction of fees and the accompanying product changes have fueled a heated debate within the cryptocurrency community about the future of self-custody and the role of hardware wallets in maintaining user autonomy. As Ledger navigates these challenges, the company’s commitment to security and user experience will play a crucial role in shaping its reputation and market position in the coming years.
