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Taking all payment in Ethereum doesn't matter when you have to pay for servers and domain names in fiat.

Servers and domains are one of the easiest things to buy with crypto.

I actually just migrated away from Hetzner last week (for unrelated reasons) to two new providers to whom I'm paying crypto (no KYC required) based on this list: https://bitcoin-vps.com/

would be nice if you could pay in your own token.

I'm not sure to what you're referring by "your own token", but most do offer a range of popular tokens by using one of the 3rd party payment providers like Coingate.

I had paid for my servers with some Litecoin I have that I usually use for small purchases because of the low fees.

kind of like a free tier for token projects. if it gets traction you would need more servers but the token would have value so there you go.

Lots of work on that front no doubt, and not only wrt domains

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