Anthony Di Iorio, CEO and founder of Jaxx, a multi-token blockchain wallet provider, announced on reddit that the company plans to add more ERC20-compliant tokens and cease supporting hierarchical deterministic (HD) features for its users who trade Ether.
Di Iorio explained in detail the decision to remove Ethereum HD structure from Jaxx. HD structure makes new addresses once an old one is used, and works well for bitcoins. However, since sending Ethereum-based tokens requires an initial Ether cost as the “gas” to run the transaction, users must ensure that both the transmitting and receiving addresses have some Ether in them already. This requires users to take the "primitive" step of manually sending Ether to the new address before other tokens can be traded back and forth between them. Failing to grasp this concept, many users sent support requests wondering why tokens remained unsent, even though sufficient Ether was stored in their Jaxx wallets.
"In a coming release we will be halting new address creation for ETH wallets and only display the ‘genesis’ address for user wallets. This means that across the board in Jaxx your Ethereum address and all your token addresses will be the same and our users will never have to worry about moving funds from one account to another in order to send tokens."
Jaxx also intends to offer a service that will consolidate all Ether from multiple addresses into the genesis address. From here on out it is recommended that users only use their genesis addresses as the recipient of funds or reoccurring payments. There will be a grace period for users to make the changeover, and eventually when the system requires it, an announcement will be made.
Several users expressed their concerns about the removal of the HD structure. Di Iorio responded that he would work with his team to find out if a compromise to get the best of both worlds is possible.