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ETH enters deflation? EIP 1559 officially enters the preliminary trial, getting closer and closer to one of the biggest upgrades in the history of Ethereum
Ethereum developers have begun to review the algorithm changes for network fee pricing, which may lead to a reduction in the total supply of Ethereum.
The Ethereum Improvement Proposal (EIP) 1559 sets a basic fee for the network. The basic fee is calculated through an algorithm based on whether the network is congested or not, and will increase or decrease accordingly.
The purpose of the proposal is to reduce costs, especially when network transactions are congested, so that people do not have to pay more for guessing network fees, but can use this algorithm to predict how much fees will be required.
According to the Status developer, “This allows the wallet to automatically set gas fees for users in a highly reliable manner.”
In another change, this basic fee will then be destroyed instead of being distributed to miners as it is now, unless the user adds an additional fee to this basic fee.
Sometimes, this can result in the destruction of about 5,000 eth per day or as much as 42,000 eth of gas at peak times like September.
Since the proposal adds the so-called soft limit of 10 million gas units, and then the hard limit of 20 million gas per block, based on the code calculation of all parameters, the basic fee is sufficient even during a period of network congestion. Include transactions quickly.
Therefore, while users save costs, holders will be able to benefit from the cost of destruction and miners will get their own block rewards.
This is a win-win solution. Although it is a complicated proposal, it has reached the stage of preliminary review.
In the past two weeks, about 12 coders have been working on the proposal. Tim Beiko, the new chairman of the Ethereum Core Developer Conference, pointed out:
“Although this PR version is not the final version (the current EIP 1559 specification is not the final version either!), it will provide enough background information for the Geth team for preliminary review.”
The developers also plan to test the network’s ability to withstand transaction spam attacks. If it remains in normal operation, it will well show that EIP-1559 is very powerful even in severe network congestion when dealing with states like the main network. . “
Therefore, as research and development progress, the proposal is moving towards becoming one of the biggest upgrades of Ethereum, which will improve the usability of Ethereum, especially in high-congestion situations, while reducing the issuance of ETH.