2023-01-26
EIP 1559 (Ethereum Improvement Proposal) launched on August 2021. EIP1559
protocol was programmed that a portion of each transaction of Ether will be
destroyed. Since EIP1559 has begun, until January 2023; 2.8 million ETH have
been burned (worth about $4.6 billion). The supply growth of ETH has dropped
1.6% per year since EIP 1559 implementation.
EIP 1159 aims to make Ethereum deflationary and reduce gas fees. It
also improves mechanism for gas fees by separating gas fees into 3 categories.
1. Base Fees
Base fess will be set as a minimum charge from Ethereum network and manage
burning mechanism to reduce numbers of ETH in circulation.
2. Priority Fees
A way to pay extra fees to miners that will help speed up your
transactions.
3. Max Fees
It sets the maximum amount for
paying fees to prevent excessively and unreasonably high fees.
Miners will definitely get less
returns from EIP-1559 upgrade but the upgrade will give positive effect over
Ethereum network for the long term for both miners and users of Ethereum
network.
