A pending upgrade to the Ethereum network could result in ETH becoming an undiscovered asset scheduled for the London hard fork in July.
Top Ethereum developer Tim Beiko joked earlier that the decision should be made two weeks ago, and then he put the proposal in the Core Developers call today. No one had verbally objected.
“We are in a place where EIP is effective,” Beiko said during the call. I think we’re in a position where it’s ready to be included in the upgrade. ”
The EIP-1559 proposal, co-authored by Ethereum co-founder Vitalik Buterin, will convert Ethereum’s fee structure away from the bidding system that allows miners to prioritize the highest bids. The new fee structure adjusts the fees so that the user pays only the lowest bid per block.
Additionally, the base network fee will now be burned per transaction, potentially leading to a deflationary economy for ETH.
The proposal has been widely supported by nearly all members of the Ethereum community, including investors, speculators, and regular users of the network. An analysis of network transactions last year found that the EIP-1559 would burn 1 million Ether in 365 days – almost 1% of the network. Earlier this month, research from Grayscale concluded that the deflator would be a boon to the price of Ether, generating a round of positive price feedback.
Users have also been worried about gas fees for months, and there have been some notable examples of how high fees are for simple transactions, including the $ 36,000 Uniswap transaction.
One notable group that is less excited about this proposal are Ethereum miners. There have been threats of a hard fork and an alternative proposed, and some estimates have pegged revenue for miners at 50%. In the end, however, the proposal is now being continued, putting an end to selfish mining practices.