Vitalik Buterin’s Frame Transactions Could Reshape Ethereum Scaling and Wallets

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Vitalik Buterin has published an updated EIP-8141 proposal introducing Frame Transactions, a new Ethereum transaction format that separates actions from dependencies to enable parallel processing and hyper-scaling. The design allows up to 64 steps per transaction with all-or-nothing execution, supports gas sponsorship through paymasters, enables account recovery without seed phrases, and adds P256 signature support as a step toward post-quantum security. A public testnet already runs the proposal ahead of the 2027 Hegotá hard fork. Separately, Starknet lending protocol Vesu reported that a faulty Pragma oracle feed caused 47 positions holding $3 million in collateral to be liquidated during a two-minute window on September 4. Vesu maintains its smart contracts functioned correctly, and recovery discussions involving Starknet organizations are ongoing.

Key Elements

Vitalik Buterin has published a revised proposal for a new Ethereum transaction format that could fundamentally change how wallets operate, how fees are paid, and how the network processes transactions at scale. The updated EIP-8141, released Sunday, heads into Hegotá, the next planned Ethereum upgrade, and introduces a structure called Frame Transactions that packs multiple operations into a single batch.

The proposal arrives as Ethereum developers search for ways to make the network more scalable without sacrificing its general-purpose flexibility. Buterin has framed the design as part of a longer arc toward what he calls a more Bitcoin-like Ethereum, where predictable transactions carry the lowest possible gas costs.

At its core, EIP-8141 separates what a transaction does from what it requires. In Buterin’s framework, the effects of a transaction are called actions, while the preconditions that must hold true are dependencies. Signatures, Merkle proofs, and zero-knowledge proofs can all serve as dependencies. By splitting these two components, the network could process dependencies concurrently rather than sequentially, opening the door to more efficient verification methods.

Buterin explained the distinction in a September 5 post on X, noting that recent work on transaction formats, state models, keyed nonces, and recursive STARK mempools has produced a much more explicit understanding of how transactions function. Pure dependencies, he suggested, might not need to be re-verified by every validator. Instead, the mempool could check them once, and in advanced stages, multiple checks could be aggregated into a single STARK proof.

What Frame Transactions Change for Users

Today, an Ethereum transaction does one thing. It sends money, or it approves a token, and that is the entire job. Frame Transactions change that model. One transaction can carry up to 64 steps in a fixed order, and the entire batch fails if any single step fails.

That all-or-nothing rule eliminates a familiar failure mode in which an approval lands but the swap behind it does not. Approving a token and swapping it becomes one click instead of two. Wallets can also fold a full onboarding flow into a single confirmation.

Buterin floated much of this logic in March, when he pitched a broader Ethereum wallet overhaul. The new draft formalizes several changes that would affect everyday users.

The first change targets seed phrases. A lost 12-word backup today means lost funds. EIP-8141 detaches an account from its original key, allowing wallets to rotate keys or rebuild access through a second device or a trusted contact. The private key still exists, but users stop carrying it on paper.

The second change targets gas fees. Paymasters let any application pay a user’s fee, so newcomers can act before buying Ethereum. Applications absorb the cost as a customer acquisition expense.

The third change targets signatures. The draft adds P256, the <a href="https://xpertsstudio.com/crypto-holders-turn-to-loans-as-markets-cool-in-2026-cq/” title=”Crypto Holders Turn to Loans as Markets Cool in 2026: CQ”>cryptographic scheme behind passkeys and phone security chips. Its authors describe the move as an off-ramp toward post-quantum cryptography rather than a finished quantum fix, an idea Buterin sketched in his lean Ethereum roadmap in July.

Buterin has linked EIP-8141 directly to Ethereum’s hyper-scaling ambitions. He has said the design could make transaction formats more minimal, relying on lists of calls, flags, origins, nonces, and other basic fields. That structure could improve compatibility across EVM-based chains with different features and provide a common interface for future transaction designs.

The proposal supports atomic batching and gas sponsorship while leaving room for post-quantum security mechanisms. A public testnet already runs EIP-8141, giving developers a live environment for testing the transaction model.

Buterin described the proposal as part of Ethereum’s broader move toward more statically analyzable operations. He noted that lower gas costs could favor transaction types that require less dynamic processing. The shift does not remove Ethereum’s general-purpose capabilities. Instead, EIP-8141 could let users and developers choose transaction structures based on their computational requirements.

Client teams have set no activation date, and the Glamsterdam gas limit push arrives first in Q4 2026. Developers now face the task of refining the technical design ahead of the planned 2027 Hegotá hard fork. Ethereum changed hands near $2,512 on Sunday, roughly 49% higher over 90 days.

A Separate Oracle Incident on Starknet

While Ethereum’s scaling roadmap advances, a lending protocol on the Starknet network is dealing with the fallout from a different kind of infrastructure failure. Vesu, a Starknet-based lending platform, reported that a faulty Pragma price feed triggered the abnormal liquidation of 47 user positions holding approximately $3 million in collateral on September 4.

The incident unfolded within an exceptionally narrow window, from 04:08 to 04:10 UTC. During those two minutes, erroneous pricing data from Pragma reached several Vesu liquidity pools and made 47 borrowing positions appear eligible for liquidation. Automated bots executed the liquidations before the feed corrected itself.

Vesu emphasized that its underlying smart contract infrastructure was functioning exactly as programmed and contained no exploitable weaknesses. The liquidation system simply responded to compromised data received from the oracle provider. No protocol-level patches were necessary, according to the team.

In an overcollateralized lending system, a borrower deposits assets worth more than the value of a loan. The protocol uses an external price feed to measure the collateral ratio, and a liquidation may begin when that ratio falls below the pool’s required level. Vesu attributed the September 4 liquidations to bad inputs rather than faulty execution.

The protocol has not yet revealed which specific assets experienced pricing errors, the magnitude of price deteral retained by liquidation bots. A comprehensive technical post-mortem is anticipated to address these questions

In response to the incident, Vesu initiated coordination efforts with Pragma, StarkWare, the Starknet Foundation, and pool curators to attempt fund recovery for affected parties. Pragma has since worked with the relevant organizations to deploy a fix addressing thels as a precaution, with Vesu expecting them to remove the restrictions after reviewing the fix

The protocol has not disclosed what portion of the $3 million might be recoverable or whether liquidation bot operators have committed to returning seized assets. No specific reimbursement figures or timeline for repayment have been made public.

Affected users who experienced liquidations during the critical two-minute period were instructed to submit support requests through Vesu’s Discord channel. Those utilizing the Earn product were cautioned against prematurely closing positions, as doing so might jeopardize their eligibility for potential reimbursements.

This type of oracle malfunction is not unprecedented in decentralized finance. A comparable situation affected Aave during March 2026, when an outdated parameter led to between $26 million and $27 million in erroneous wstETH liquidations. Aave subsequently conducted reviews of its oracle refresh intervals and backup mechanisms.

Beyond Pragma’s implemented fix, Vesu has not disclosed any modifications to its oracle infrastructure or risk management protocols. Blockchain-based smart contracts lack inherent capability to access external market pricing independently. They depend completely on oracle networks to gather, consolidate, and transmit price information to on-chain systems. Disruptions at any point in this data pipeline can precipitate erroneous transactions or liquidations.

The protocol indicated a detailed technical analysis will be published following the completion of its investigation.

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Source: finance.biggo.com