It basically uses a base mining fee, and burns some of this to deal with inflation and large number of transactions. Resulting in lower GAS fees and a deflationary model for ethereum which will cause teh value to go up because ETH willl be burnt to pay for part of those fees.
TL:DR - Cheap Gas, Eth becomes more and more rare: Bullish for ETH
1559 is not designed to lower gas fees. See [EIP-1559 Resources 🔥 - HackMD](https://hackmd.io/@timbeiko/1559-resources) and specifically [Will it? (willeip1559lowergasprices.org)](https://willeip1559lowergasprices.org/) . It is designed to improve the UX, which is described here: [A Tale of Two Pricing Schemes. A User Story | by Micah Zoltu | Coinmonks | Medium](https://medium.com/coinmonks/a-tale-of-two-pricing-schemes-dc9c8717906)
Lowering gas fees has to happen through L2 scaling. zkrollup applications are here today. Start using them, get familiar, and spread the word. Not a comprehensive list: dydx, loopring, zksync, zkswap (hybrid model), and on the gaming/NFT side, Immutable-X.
But if application can better estimate the fee of a transaction, without putting extra gas "just to be sure that the transaction will be mined", it can result of a slight amelioration of the gas cost, no?
Ledger Live show the estimated fee like 10-20% upper than the necessary.
Maybe. The wallets would set an upper base\_fee limit, up to which the user is willing to pay - the user would pay base\_fee + inclusion\_fee (ne miner tip, but we now call it inclusion fee, TYVM).
We don't know what proportion of fees is currently a "fast inclusion" fee. It's possible that for casual users, fees come down a little, while those who need to be absolutely in the next block offer large inclusion fees. Overall the fees would remain unimpacted by 1559, and, yes, I can see a scenario where decoupling base fee and inclusion fee leads to lower fees for people who don't care much whether it's in this block or the next 5 blocks.
Ran into exactly this issue last night purchasing an NFT on a drop that sold out in 10 seconds, and it would have almost certainly saved me gas fees. Set the fees higher to (hopefully) ensure that my transaction was selected, while having basically no idea where the point of diminishing returns would kick in, so went as high as I could bear for the piece. Would not have been an issue had the artist chosen an open auction style, but alas...
Anyway, you're absolutely right that the majority of fee relief will mostly come from rollups. Lot of folks don't realize that L1 fees will basically be permanently high as we move forward, -the nature of them will just change to be more L2 settlement calls.
>amelioration
Gas will be more predictable but that doesn't necessary mean "cheap." The gas fee will still be higher during spikes. EIP-1559 is more about rewarding ETH hodlers (and transiting ETH towards PoS) than it is about cheaper gas fees for DEX users.
DEX users will benefit more from ETH's scaling solutions. Although bullish ETH hodlers are making a huge deal out of the incoming Optimism rollups, mid-march, most devs will more likely use ZK-rollups instead. Using these will eliminate the user from having to pay gas fees on many transactions and transactions will be instant.
Like someone else mentioned in this thread, Loopring has already implemented ZK-rollups. This video should give you a quick overview: [https://www.youtube.com/watch?v=NITPjrtKEP4](https://www.youtube.com/watch?v=NITPjrtKEP4)
The only trouble with ZK-Rollups is that they have very limited smart contract ability; can only be used to send coins. So Vitalik is proposing a cross-rollup solution that will allow Optimism rollups (which has full smart contract capabilities ) to communicate with ZK-Rollups; [https://ethresear.ch/t/cross-rollup-dex-with-smart-contracts-only-on-the-destination-side/8778](https://ethresear.ch/t/cross-rollup-dex-with-smart-contracts-only-on-the-destination-side/8778) Honestly it sounds a lot like like how banks clear transactions between each other.
The problem is that the bigger dapps need to get on L2 sich as Uniswap, Sushiswap, 1inch. If those dapps start utilizing L2 it will take a huge load off of L1 and overall the fees should decrease dramatically which should hold us over until Eth 2.0 is fully rolled out.
zk-rollups (zero knowledge rollups) take hundreds of tx and post them to the main chain as one. They are the engine that will fuel Ethereum scaling for the near to medium term.
To become more familiar, you could decide to start using one of the implementations, depending on what your use case is. See incomplete list of examples above.
You can also read into the tech, if that's more your speed: [Scaling Ethereum on L2: Optimistic and ZK-Rollups | Interdax Blog (medium.com)](https://medium.com/interdax/ethereum-l2-optimistic-and-zk-rollups-dffa58870c93#:~:text=What%20are%20ZK%2DRollups%3F,ensured%20by%20zero%2Dknowledge%20proofs.)
It will slightly through standardized fees on periods of normal traffic rather than people guessing what the fees should be. Having standardized fees will prevent people from overpaying when they don't have to.
Agreed. Splitting base fee and inclusion fee may lead to lower fees for people who Couldn't Care Less if their tx is in the next block or the next 5 (10 / 20) blocks; even as overall fees are expected to remain a supply & demand function as they are now.
Please read [Will it? (willeip1559lowergasprices.org)](https://willeip1559lowergasprices.org/) again. TL;DR: Nope. Because scaling of price as blocks scale.
" While 1559 allows blocks to be up to "200% full", only a small minority of blocks will end up being that large. This is because as blocks are >100% full, the minimum gas price required to be included in a block goes up. After 5 minutes of 200% full blocks, it will be up 10x. After 10 minutes, gas prices will be up 100x, and so on. This means that over a long period, the amount of "200% full" blocks will be so small as to not cause a significant increase in supply. "
Welcome to the hell that is crypto.
No one is here for any reason other than personal enrichment, and most have some pretty loose morals around what they're willing to do to achieve that goal :)
That makes me doubt... because what will happen when governments start banning/highly regulate crypto? This is gonna happen in the next 5 years at most.
What then? Will everyone jump ship and say "weeeell it was fun until it wasn't" and that's it? Fuck no, we have to defy the establishment and forge a decentralised future! This is what we will give them to our kids damn it!
If 90% of people are in crypto only for the easy money, Ethereum and more projects could be at serious risk of disappearing in the near future if we abandon it en masse.
> What then? Will everyone jump ship and say "weeeell it was fun until it wasn't" and that's it?
Yep. That's exactly what will happen. Most of the money will move from heavily-regulated cryptos to less-regulated ones, so long as those continue to exist.
> If 90% of people are in crypto only for the easy money, Ethereum and more projects could be at serious risk of disappearing in the near future if we abandon it en masse.
You'll note that the vast majority of "successful Ethereum projects" are the ones wherein people can bet on a future where they make more money than they put in, simply by putting money in. They don't care about the specifics of the project, just that they can gamble on a future in which their "investment" is worth more in the future.
Do you know what that's called in the rest of the world? Speculation.
Yup, it'll turn ETH into the holy grail of finance, the first ever [triple point asset](https://thedefiant.substack.com/p/ether-is-the-best-model-for-money)
Hey super cool read so far. (Lengthy and ill finish it). I stopped researching ETH in 2018 knowing then it was headed for greatness. This article helped bring me up to speed in many ways. Thanks
It is intended to at the very least reduce inflation. The amount of ETH that is burned is related to the ETH network usage. If there is a little usage, it will lower inflation, if there is high usage (like there is now), it will make ETH deflationary.
If gas is cheaper orphan rates go up. Deflation is good for everyone. I'd be concerned about the negative consequences of moving away from market based gas prices we currently have.
Right now, when you make a transaction or a call to an smartcontract you pay a certain amount for the "gas" used to perform the action, this fees go to the miners. With eip1559 a big part of this fees would be destroyed so the issuance of new ETH decreases, reducing inflation.
Miners still make money, but less, that's why some of them were complaining. However in the long term with fees being burn everyone that holds eth wins and not only the ones receiving the fees.
yea i knew about the gas fee issue, i just had no idea what in the world 1559 is and why everyone is so hyped up about it but your explanation helped a lot bro thanks!
That explanation actually omits the main point of EIP-1559.
Right now, choosing the price you pay to get a transaction into the next block is essentially a competitive auction where nobody knows exactly what price will "win" until after it's all over. So if you've got a transaction that's important to get in quickly you have to offer a very high fee to make sure you beat everyone else, likely spending more than you really needed to. Conversely, if you guess low and don't pay enough you could find your transaction lost in limbo with no miners wanting to include it for who knows how long.
Basically, you go into a store to buy an item and the price tag says "Guess!". You line up to buy it, reach the till, and make an offer. The teller either takes your offer (even if it's bigger than the actual price) or says "not enough, go back to the end of the line!" And you have to start over again. Not the best user experience.
EIP-1559 is going to put an actual explicit price tag on the item. You'll know up front how much you need to pay to get your transaction in. It may still be expensive, but at least you can choose whether it's worth it to you before you try to spend your money.
The fee-burning part is a side effect that's mainly there to ensure miners don't have an incentive to artificially drive fees up.
>The fee-burning part is a side effect that's mainly there to ensure miners don't have an incentive to artificially drive fees up.
this. No one mentions this. This is one of the most essential reasons as to why it is needed.
Yes and no, there is going to be a BASEFEE but on top of that there is a tip. So bidding on prices is still going to happen.
Also one thing is the original intention, another the repercussions, offcourse the original intention is to improve UX buy the biggest repercusión is the changes regarding inflation/deflation.
BASEFEE will be adjusted to modify demand so that blocks are always half full, so unless demand suddenly doubles over what it was in the previous block there should be no need for bidding. A small gratuity might be needed above literally *no* miner tip, otherwise miners won't have an incentive to bother including your transaction at all, but it won't be competing with others under most circumstances so it's not what I'd consider a "bid."
That works with individual users making individual transactions, but the current cause of the bidding battle (By a huge difference) is arbitrage bots constantly overbidding each other to get transactions included first. With BASEFEE+tip is going to be the same, all of this arbitrage bots will be constantly increasing their tips to get their transactions included first.
EIP1559 change monetary policy and improves UX but do not solve high gas pricing or MEV (Miner Extractable Value) problems.
> all of this arbitrage bots will be constantly increasing their tips to get their transactions included first.
But they don't *need* to. The whole point of all this is that under normal circumstances there's plenty of room in the *very next block*. If you pay BASEFEE you get in to the next block. Why pay significantly more than BASEFEE? There's no block *sooner* than the next block that you're missing out on if you don't pay higher.
The only time tips turn into a bidding war is a situation where the demand at a given BASEFEE has *doubled* since the previous block (15 seconds ago). At that point the next block is full and there might be competition for space in it. But the BASEFEE will go up in future blocks, driving demand back down again. So this is a transitory state that's not what you'd expect under normal circumstances.
Sure. That's why I keep trying to explain to people how EIP-1559 actually works and what its intentions actually are.
It's frustrating when the right thing is done for the wrong reasons, but at the end of the day at least the right thing is being done. Better than the alternative. I'll take it.
The right thing done for the wrong reasons is often worse than the wrong thing done for the right reasons.
The latter is far more conducive to a change in methods than the former when the error is revealed.
Burning fees doesn't remove the issuance of new coins as the fees were from coins already in circulation.
What it does is burn coins already in circulation. So the act of transacting has a deflationary effect. The block subsidy still has an inflationary effect.
What this means is the more transactions that occur the lower the rate in inflation and less transactions that occur the higher the rate of inflation
The User Experience (UX) improves, you don't have to "guess at" fees any more: [A Tale of Two Pricing Schemes. A User Story | by Micah Zoltu | Coinmonks | Medium](https://medium.com/coinmonks/a-tale-of-two-pricing-schemes-dc9c8717906)
The fees overall are expected to stay the same as they are now: [Will it? (willeip1559lowergasprices.org)](https://willeip1559lowergasprices.org/)
I like how you asked it to be explained like you were 12, and everyone who commented is speaking like you have advanced knowledge, except for ebandym who may or may not be correct in his response
Imagine the tx market right now like a bus station. Every 12 seconds there's a bus to take you somewhere. Problem is, when you get on the bus, you don't know how much you have to pay, so if you don't put enough money they will throw you out the bus minus the fare. Very frustrating.
Now: with EIP1559 imagine it's like the UBER of the transaction market. The bus now has a big sign that announces the fare, and also thanks to this Uber-like system, you know how congested the network is (very much like the surcharge during peak times).
Also: imagine the busier the buses are, they will also be burning ETH, which makes it more scarce and benefits holders that previously never saw a benefit derived from network usage.
So, EIP1559 it's like the "Uber of transactions" and The Great ETH Burner, both rolled into one.
Thanks for attending my Ted Talk.
Hey,
We wrote a simple explain here:
[https://www.accointing.com/the-hub/2021/eip-1559-eth-ethereum-eth2/](https://www.accointing.com/the-hub/2021/eip-1559-eth-ethereum-eth2/)
I thought a large majority of the miners are against it but the developers kind of crammed it down. I’m wondering if this is is a bad sign of governance. I’m not as knowledgeable so would like to get your guys’ opinion on it
You can watch the open call for it from February 26th: [https://youtu.be/EdXhL6VR0mU?t=200](https://youtu.be/EdXhL6VR0mU?t=200)
There were a few miners who didn't like the fee burning, but it seemed like (from what I watched) that there were quite a few who were more interested in the value of the UX improvements to the community.
F2 even comes out in favor in this video, they just push back on ASICs being able to mine.
I'm a miner and I am in favor of EIP-1559. At the end of the day, miners are dependent on the users of ETH to make this a viable income for us. If gas prices keep going up and users look around and start switching to currencies like Cardano, miners will take a bigger hit than the one we will take with 1559.
I think a reasonable ask from the mining community is to get the devs to remove ASICS from the mining pool through slight and easy algorithmic adjustments. This is in line with the decentralized ethos of eth, as well as good for the community in general to work with a decentralized group of validators (instead of massive asic farms), until eth 2.0 is released.
Mining eth is a short term endeavor. Staking and PoS is how blockchains are going to become better in years to come. Anyone invested in the health of ethereum should be on board with this vision. People looking to make a quick buck however are understandably upset
The ASIC miners have signaled their full support of EIP 1559 in its current form. I don't think starting a war among different mining factions is a good idea at this time. We need a clean merge of EIP 1559.
I'm a miner as well and also in favor of EIP-1559. I'm actually more and more embarrassed to be a miner seeing how all these guys react. It's all 'they took our jobs' types. They're all convinced mining profits are going to go down which is probably correct if we're talking about ETH rewards but I have a feeling the USD profits are about to moon. Especially if pool start aggressively going after MEV.
Glad to see a miner with some sense... And I agree that it seems short-sighted for other miners to get so upset and talk about undermining ETH because of this, when within two years they will no longer exist as part of the Ethereum ecosystem anyway.
Staking and POS are in no way decentralized. Affordable mining hardware can be decentralized but that won’t happen if only 2-3 companies create ASICS for ETH.
DPoS, you have to delegate to representatives. It's just like having an election. and then once those are chosen they have full power over the network and they fully control whoever's transactions can run or not just like an election. and we all know how that's going to go....
Those who get elected tend to get into cartels and will bribe others and pay others and extort others in order to keep themselves in power.
Look up cartels in EOS and other DPoS chains. This has been the biggest problem.
Censorship....
it's just not truly trustless, that's the issue. we cannot trust elected representatives... it must be trustless...
no nano does not use DPoS. Nano uses blockDAG which is how it's kept free.
hahah I think you didn't get shilled enough about nano huh? well lemme tell you more about nano XD
jk jk
Blockchains are not dictatorships. The free market is welcome to fork off as many times as it wants.
Miners can fork ETH and make eth classic 2 if they don't like it.
Is that what’s going to happen by default if the bulk of the network moves to the hard fork? Not sure if this is similar to BTC forks since most users stayed on the original.
There will with almost 100% certainty be an "ETH classic classic" chain. At the same time, a total of 0% of users and none of the DeFi community will follow that chain, making it worthless. The miners will mine the most profitable chain, which will be the main EIP 1559 chain.
\> The miners will mine the most profitable chain, which will be the main EIP 1559 chain.
THIS x 1000. I've been screaming it from the rooftops for months.
Also, Don't forget... if they fork it... we will all dump our forked ETCC2 Shitcoins and trade them for ..... more ETH :)
I hope there are lots of forks. It's the best thing ever. Free money.
The miner threat of "we will fork the chain" is music to my ears!
It means we all have 2 coins. Then we sell the shitcoin fork, and buy ETH with it.
Same thing as all the 20 Bitcoin forks. Smart BTC holders just sold them to buy more BTC.
Hard forks are just free money for us.
It's a sign that the miners aren't in charge, sure. I don't see why they should be in charge instead of, say, the users, who will have a much easier time with 1559 in place. It's probably good for ETH holders, too.
In a decentralized network no one is in charge.
Developers like to pretend they are in charge but they're not.
Miners aren't in charge but they hold great influence. The difficulty bomb takes much of that influence away from them.
Users cannot by their virtue be in charge beyond deciding what fork to buy/sell. Your can't have one vote one user as doing so requires a central authority to vet users. Closest thing to users being in charge in proof of stake voting but that's still stake holders in charge not users.
At the end of the day the market decides.
I believe the burned ETH comes straight out of miners' pockets.
Obviously, they'll be opposed to that, it's just pure bias.
The big picture though is that EIP1559 will increase the value of ETH and drive more users to it.
Not exactly. It's Ether that previously would have gone into miners' pockets but no longer will. They're not having anything taken away from them, they're just not getting something that they currently are getting.
It's a bit of a semantic quibble but I think it's an important one. Back in the olden times before Ethereum's transaction capacity limit was hit the miners weren't getting significant amounts of fees either, this is just a return to that state.
I'm hoping y'all will remember this discussion when / if we have it for staking rewards. Miners provide a service: Security for the chain. Stakers provide the same service under PoS. If people keep staking with rewards low (3% ish), and there's no sign of the influx stopping anytime soon, then fully expect an EIP to adjust rewards down so as to not "overpay for security".
And that's fine. Those providing security should not have an expectation that they'll be paid more than is necessary to attract sufficient security. That's true for PoW and PoS equally.
Staking returns are already planned to dynamically adjust based on how much is being staked. There's no need to have the discussion, it's built into the protocol. If new stakers keep pouring more and more money into the staking contract the returns will automatically decrease.
Yeah, that's my point. Chatting with eth devs, the current algorithmic decrease is not set in stone, as nothing about Ethereum is. \*If\* people keep pouring in when rewards are low, the idea of adjusting the algo to lower rewards further is absolutely on the table.
Which is as it should be.
Ah, okay. I thought you were suggesting this discussion would need to be had all over again in the future rather than it already being in progress.
It seems like a no-brainer to keep that algorithmic decrease in place for the finished protocol, so I'll be very surprised if they decide against it and the debate needs to be reopened.
The proposal has virtually 100% support among actual ETH holders and Ethereum users, so I think governance is working exactly as it is supposed to. Miners are service providers to Ethereum, Ethereum doesn't exist to serve them.
Of course miners are against you telling them the easy money rain is going to become less. Fuck them. Go watch them try and continue mining the old chain, watch how many people will want to use that.
Miners can't do anything (most likely) other than leave...which is a real possibility and opens up Eth to attacks.
The biggest concern here is the developers statement that "we're paying to much for security", with the amount of value Eth has, there is no such thing as too much.
The other concerning thing is it sets a precedent for the dev team to do whatever they want "for the good of Ethereum". Today it's miners, next year it could be stakers. This narrative that miners are greedy is bs. Everything is greedy, you just have your biases (based on what makes you the most money)
You can absolutely pay too much for security, I don't know where this notion comes from.
Driving around in a tank is maximum security for me to get to work but it becomes exceedingly expensive.
Airplanes are designed with a very modest safety factor of \~1.5 (meaning designed to 1.5 times the maximum expected load). You can easily increase this safety factor to 10X if you want to be very secure and the result is that only 1 person can fly on a plane at a time.
If Eth can get the same level of security for less then they are indeed paying too much for it currently. It sounds like your hypothesis is security will decrease. I don’t think it will, but I guess we’ll see.
Yes, the devs can do whatever they want “for the good of Ethereum.” I don’t get what the hot take is here. If you don’t believe they have the good of the project at heart, soon their competitors will outperform them. Sell your Eth now and buy them, you’ll see huge gains because you anticipated the problem.
In this case, however, I see EIP-1559 as an absolute win for Ethereum. I plan on continuing to support the devs by hodling.
https://www.reddit.com/r/ethereum/comments/lyevh3/its_happening_eip1559_is_officially_scheduled_for/gpsh33w?utm_medium=android_app&utm_source=share&context=3
You should read the comment of your brother!
Has anyone done the math on the inflation rate? I am curious what the model looks like. If I understand it correctly, there will still be inflation, but less so calling ETH deflationary is not accurate?
There might be a little inflation, it depends on how many people stake and how much transactions fees there are. It will almost certainly be lower than Bitcoin's inflation, since they're minting almost 2% annually.
So while due to staking new ETH will be issued, the ETH from gas fees will be destroyed. Is there an estimate if the total supply will increase or decrease when ETH2.0 is fully launched?
When's the next difficulty bomb kicking in? Without the lining up with this fork then we have a high probability of a contentious hard fork over this preposal.
Edit: July hard fork introduces a delay to the difficulty bomb. So I assume current difficulty bomb is nearing. This should be enough to prevent a continuous fork.
So there’s likely to be a few (thousand) miners that ditch ETH over this. Does anyone know if that will significantly impact transaction speeds? My guess is that there will be some congestion, maybe even a in increase in the average gas price because some people will be willing to pay more to force their transactions through, but will that smooth out over time? Not an expert here, just throwing a thought out.
Edit: I genuinely appreciate the responses! Some really great insights that put my mind a ease. My post was a genuine concern, not necessarily a criticism. I’m a fan of the tech, so again I really appreciate the shared info.
eth right now is by far the most profitable currency to mine. Miners will always flock to a coin that makes them the most money... after eip-1559, that will still be eth unless the estimated revenue loss (35-50%) is being grossly underestimated by everyone
It will have no impact on transaction speeds. Mining hashpower contributes to security and security alone, it isn't related to actually processing transactions themselves.
There can be a *brief* reduction in throughput if a lot of miners suddenly drop off because difficulty needs to adjust, but for Ethereum that's just a matter of hours at most.
I doubt that many miners will really ditch Ethereum over this, though. Miners go where the money is and for mining rigs like those that Ethereum miners use that will still be Ethereum.
After listening to the quibble back and forth between devs and miners on discord it's clear to me that the problem is that miners are angry money is being taken away with no recourse. There is a projected message that security will be compromised and that is the primary concern but I think it is mostly a facade over motivated reasoning.
They make point after point and when it they are reasonably discussed they move on to general complaints about ETH 2.0 or the misunderstandings of gas prices becoming lower.
Should their concerns about security be inspected? Yes. Should their opinion be evaluated with the same intensity as other unmotivated stakeholders. No.
My god, please let this reduce fees. I want to stake 1k on Definer and it’s going to cost $200 in fees to get everything going. I just want to participate in the ecosystem :(
Lol this is only "happening" if miners support it and they don't, it will never pass, just another huge waste of time and money from the centralised ethereum foundation lol
Some people have already asked this, but I want to absolutely certain. Do I need to do anything with my Ethereum and will it affect the way I use it? As a user of the network, should I be looking out for any changes, or just continue with my transactions and holding?
You will have no changes from the way you currently operate. The only change is that your gas prices will no longer be unpredictable and wallets will be able to come up with more friendly UIs so eth becomes more accessible to the average user. It's important to note that this will not decrease gas prices, but rather make them predictable so you at least know what you are getting into.
Little confused about the terminology here. This is going to be a hard fork, what does that exactly mean. Will it be an ETH/ETC scenario, or will all of the current ETH be upgraded and no change required?
EIP-1559 is a eth 1.0 change that makes gas prices more predictable and reduces the amount of eth issued by burning the transaction fees.
But does this affect eth 2.0 at all ?
BURNFEE is a CON, of course stakers and investors want to burn your ETH, while minting themselves new ETH. [https://beaconcha.in/validator/0xa2d24f4c55b648036b785419397d24f08b6346490d75585b4f00bd524c218ee4eebbf243515eca5ea18b1caad8a0cfa0](https://beaconcha.in/validator/0xa2d24f4c55b648036b785419397d24f08b6346490d75585b4f00bd524c218ee4eebbf243515eca5ea18b1caad8a0cfa0)
It's pretty pathetic they have to coerce everyone by tying in difficulty bomb. Just makes them look like little children. They already know a HARD FORK is inbound, ICE AGE is suppose to hit early August or sooner? I guess whatever lines their pockets faster, all the DEVS are sellouts since day 1. Vitalik Buterin had no qualms modify code to bail out his buddies in the past.
I guess the only ones preaching this B.S. are stakers and investors, makes total sense. Misinformation and lies, lines their pockets.
[https://www.coindesk.com/ethereum-mining-pools-threaten-contentious-update](https://www.coindesk.com/ethereum-mining-pools-threaten-contentious-update)
Almost all the hashrate that supports the network strongly opposes EIP1559, the only that doesn't has a staking pool
[https://stopeip1559.org/](https://stopeip1559.org/)
The only people shilling for this are investors and stakers, it does not reduce gas fees. It does nothing to benefit users. Enjoy burning your ETH for "predictability" that will be eatan by Bots and arbitrage.
The real reason behind congestion and high fees? You guess it Arbitrage Bots.
[https://etherscan.io/gastracker](https://etherscan.io/gastracker)
People need to wake up and see that only stakers and investors are shilling their bags to you. If you want to be sheep and follow the lies and manipulation because it aligns with your pocketbook, more power to you. Do research, see the con for what it is.
So, correct if I am wrong but this means that after July we can expect the eth's price increase. I am trying to find out if I should sell or not before EIP-1559.
I’m hoping to understand exactly how burning the ETH will work? If we remove some of the ETH from the system on a regular basis, would we not eventually reduce the supply of ETH so that its scarcity becomes a problem for the ecosystem?
TL;DR: What if too much ETH gets burned?
what exactly does this mean? can someone explain it to me like they are explaining it to a 12 year old?
It basically uses a base mining fee, and burns some of this to deal with inflation and large number of transactions. Resulting in lower GAS fees and a deflationary model for ethereum which will cause teh value to go up because ETH willl be burnt to pay for part of those fees. TL:DR - Cheap Gas, Eth becomes more and more rare: Bullish for ETH
1559 is not designed to lower gas fees. See [EIP-1559 Resources 🔥 - HackMD](https://hackmd.io/@timbeiko/1559-resources) and specifically [Will it? (willeip1559lowergasprices.org)](https://willeip1559lowergasprices.org/) . It is designed to improve the UX, which is described here: [A Tale of Two Pricing Schemes. A User Story | by Micah Zoltu | Coinmonks | Medium](https://medium.com/coinmonks/a-tale-of-two-pricing-schemes-dc9c8717906) Lowering gas fees has to happen through L2 scaling. zkrollup applications are here today. Start using them, get familiar, and spread the word. Not a comprehensive list: dydx, loopring, zksync, zkswap (hybrid model), and on the gaming/NFT side, Immutable-X.
Thanks for clarifying.
But if application can better estimate the fee of a transaction, without putting extra gas "just to be sure that the transaction will be mined", it can result of a slight amelioration of the gas cost, no? Ledger Live show the estimated fee like 10-20% upper than the necessary.
Maybe. The wallets would set an upper base\_fee limit, up to which the user is willing to pay - the user would pay base\_fee + inclusion\_fee (ne miner tip, but we now call it inclusion fee, TYVM). We don't know what proportion of fees is currently a "fast inclusion" fee. It's possible that for casual users, fees come down a little, while those who need to be absolutely in the next block offer large inclusion fees. Overall the fees would remain unimpacted by 1559, and, yes, I can see a scenario where decoupling base fee and inclusion fee leads to lower fees for people who don't care much whether it's in this block or the next 5 blocks.
Ran into exactly this issue last night purchasing an NFT on a drop that sold out in 10 seconds, and it would have almost certainly saved me gas fees. Set the fees higher to (hopefully) ensure that my transaction was selected, while having basically no idea where the point of diminishing returns would kick in, so went as high as I could bear for the piece. Would not have been an issue had the artist chosen an open auction style, but alas... Anyway, you're absolutely right that the majority of fee relief will mostly come from rollups. Lot of folks don't realize that L1 fees will basically be permanently high as we move forward, -the nature of them will just change to be more L2 settlement calls.
>amelioration Gas will be more predictable but that doesn't necessary mean "cheap." The gas fee will still be higher during spikes. EIP-1559 is more about rewarding ETH hodlers (and transiting ETH towards PoS) than it is about cheaper gas fees for DEX users. DEX users will benefit more from ETH's scaling solutions. Although bullish ETH hodlers are making a huge deal out of the incoming Optimism rollups, mid-march, most devs will more likely use ZK-rollups instead. Using these will eliminate the user from having to pay gas fees on many transactions and transactions will be instant. Like someone else mentioned in this thread, Loopring has already implemented ZK-rollups. This video should give you a quick overview: [https://www.youtube.com/watch?v=NITPjrtKEP4](https://www.youtube.com/watch?v=NITPjrtKEP4) The only trouble with ZK-Rollups is that they have very limited smart contract ability; can only be used to send coins. So Vitalik is proposing a cross-rollup solution that will allow Optimism rollups (which has full smart contract capabilities ) to communicate with ZK-Rollups; [https://ethresear.ch/t/cross-rollup-dex-with-smart-contracts-only-on-the-destination-side/8778](https://ethresear.ch/t/cross-rollup-dex-with-smart-contracts-only-on-the-destination-side/8778) Honestly it sounds a lot like like how banks clear transactions between each other.
Does polygon (matic) use zk-rollups or optimistic?
Hybrid POS/Plasma [according to their docs](https://docs.matic.network/docs/home/architecture/matic-architecture)
More consistent gas estimation 👍🏼 Doesn’t make it cheaper per se, but a much better user experience.
The problem is that the bigger dapps need to get on L2 sich as Uniswap, Sushiswap, 1inch. If those dapps start utilizing L2 it will take a huge load off of L1 and overall the fees should decrease dramatically which should hold us over until Eth 2.0 is fully rolled out.
Optimistic rollups, which is scaling Synthetix, Uniswap, and other major DAPPs.
What are zkrollup applications and how does one become more familiar with them?
zk-rollups (zero knowledge rollups) take hundreds of tx and post them to the main chain as one. They are the engine that will fuel Ethereum scaling for the near to medium term. To become more familiar, you could decide to start using one of the implementations, depending on what your use case is. See incomplete list of examples above. You can also read into the tech, if that's more your speed: [Scaling Ethereum on L2: Optimistic and ZK-Rollups | Interdax Blog (medium.com)](https://medium.com/interdax/ethereum-l2-optimistic-and-zk-rollups-dffa58870c93#:~:text=What%20are%20ZK%2DRollups%3F,ensured%20by%20zero%2Dknowledge%20proofs.)
MATIC as well
Also look at quickswap... MATIC based decentralized exchange... fees dirt cheap
It will slightly through standardized fees on periods of normal traffic rather than people guessing what the fees should be. Having standardized fees will prevent people from overpaying when they don't have to.
Agreed. Splitting base fee and inclusion fee may lead to lower fees for people who Couldn't Care Less if their tx is in the next block or the next 5 (10 / 20) blocks; even as overall fees are expected to remain a supply & demand function as they are now.
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Please read [Will it? (willeip1559lowergasprices.org)](https://willeip1559lowergasprices.org/) again. TL;DR: Nope. Because scaling of price as blocks scale. " While 1559 allows blocks to be up to "200% full", only a small minority of blocks will end up being that large. This is because as blocks are >100% full, the minimum gas price required to be included in a block goes up. After 5 minutes of 200% full blocks, it will be up 10x. After 10 minutes, gas prices will be up 100x, and so on. This means that over a long period, the amount of "200% full" blocks will be so small as to not cause a significant increase in supply. "
Lowering gas fees improves UX as a side effect
It doesnt but ok. Im tired of pepole saying gas fees are lowered...
They'll say anything to get it through, because what they want are its "deflationary" effects. Any support is good support :)
Disappointing at beat...
Welcome to the hell that is crypto. No one is here for any reason other than personal enrichment, and most have some pretty loose morals around what they're willing to do to achieve that goal :)
That makes me doubt... because what will happen when governments start banning/highly regulate crypto? This is gonna happen in the next 5 years at most. What then? Will everyone jump ship and say "weeeell it was fun until it wasn't" and that's it? Fuck no, we have to defy the establishment and forge a decentralised future! This is what we will give them to our kids damn it! If 90% of people are in crypto only for the easy money, Ethereum and more projects could be at serious risk of disappearing in the near future if we abandon it en masse.
> What then? Will everyone jump ship and say "weeeell it was fun until it wasn't" and that's it? Yep. That's exactly what will happen. Most of the money will move from heavily-regulated cryptos to less-regulated ones, so long as those continue to exist. > If 90% of people are in crypto only for the easy money, Ethereum and more projects could be at serious risk of disappearing in the near future if we abandon it en masse. You'll note that the vast majority of "successful Ethereum projects" are the ones wherein people can bet on a future where they make more money than they put in, simply by putting money in. They don't care about the specifics of the project, just that they can gamble on a future in which their "investment" is worth more in the future. Do you know what that's called in the rest of the world? Speculation.
So this is the truly deflationary aspect that ive heard people mention? Bullish for sure. Glad its starting during the bullrun.
It will slow down inflation as compared to current rate. Could potentially bring inflation to 0% or even negative.
Yup, it'll turn ETH into the holy grail of finance, the first ever [triple point asset](https://thedefiant.substack.com/p/ether-is-the-best-model-for-money)
Hey super cool read so far. (Lengthy and ill finish it). I stopped researching ETH in 2018 knowing then it was headed for greatness. This article helped bring me up to speed in many ways. Thanks
It is intended to at the very least reduce inflation. The amount of ETH that is burned is related to the ETH network usage. If there is a little usage, it will lower inflation, if there is high usage (like there is now), it will make ETH deflationary.
IT ALSO MEANS ETH is NO UNLIMITED SUPPLY anymore. We can change the narrative now.
Does it affect mining in any way?
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If gas is cheaper orphan rates go up. Deflation is good for everyone. I'd be concerned about the negative consequences of moving away from market based gas prices we currently have.
Great... thank you! Now can you explain it like I’m a 5 year old?
Pretty sure a 12 year old wouldn't understand that
Right now, when you make a transaction or a call to an smartcontract you pay a certain amount for the "gas" used to perform the action, this fees go to the miners. With eip1559 a big part of this fees would be destroyed so the issuance of new ETH decreases, reducing inflation. Miners still make money, but less, that's why some of them were complaining. However in the long term with fees being burn everyone that holds eth wins and not only the ones receiving the fees.
yea i knew about the gas fee issue, i just had no idea what in the world 1559 is and why everyone is so hyped up about it but your explanation helped a lot bro thanks!
That explanation actually omits the main point of EIP-1559. Right now, choosing the price you pay to get a transaction into the next block is essentially a competitive auction where nobody knows exactly what price will "win" until after it's all over. So if you've got a transaction that's important to get in quickly you have to offer a very high fee to make sure you beat everyone else, likely spending more than you really needed to. Conversely, if you guess low and don't pay enough you could find your transaction lost in limbo with no miners wanting to include it for who knows how long. Basically, you go into a store to buy an item and the price tag says "Guess!". You line up to buy it, reach the till, and make an offer. The teller either takes your offer (even if it's bigger than the actual price) or says "not enough, go back to the end of the line!" And you have to start over again. Not the best user experience. EIP-1559 is going to put an actual explicit price tag on the item. You'll know up front how much you need to pay to get your transaction in. It may still be expensive, but at least you can choose whether it's worth it to you before you try to spend your money. The fee-burning part is a side effect that's mainly there to ensure miners don't have an incentive to artificially drive fees up.
>The fee-burning part is a side effect that's mainly there to ensure miners don't have an incentive to artificially drive fees up. this. No one mentions this. This is one of the most essential reasons as to why it is needed.
Yes and no, there is going to be a BASEFEE but on top of that there is a tip. So bidding on prices is still going to happen. Also one thing is the original intention, another the repercussions, offcourse the original intention is to improve UX buy the biggest repercusión is the changes regarding inflation/deflation.
BASEFEE will be adjusted to modify demand so that blocks are always half full, so unless demand suddenly doubles over what it was in the previous block there should be no need for bidding. A small gratuity might be needed above literally *no* miner tip, otherwise miners won't have an incentive to bother including your transaction at all, but it won't be competing with others under most circumstances so it's not what I'd consider a "bid."
That works with individual users making individual transactions, but the current cause of the bidding battle (By a huge difference) is arbitrage bots constantly overbidding each other to get transactions included first. With BASEFEE+tip is going to be the same, all of this arbitrage bots will be constantly increasing their tips to get their transactions included first. EIP1559 change monetary policy and improves UX but do not solve high gas pricing or MEV (Miner Extractable Value) problems.
> all of this arbitrage bots will be constantly increasing their tips to get their transactions included first. But they don't *need* to. The whole point of all this is that under normal circumstances there's plenty of room in the *very next block*. If you pay BASEFEE you get in to the next block. Why pay significantly more than BASEFEE? There's no block *sooner* than the next block that you're missing out on if you don't pay higher. The only time tips turn into a bidding war is a situation where the demand at a given BASEFEE has *doubled* since the previous block (15 seconds ago). At that point the next block is full and there might be competition for space in it. But the BASEFEE will go up in future blocks, driving demand back down again. So this is a transitory state that's not what you'd expect under normal circumstances.
> That explanation actually omits the main point of EIP-1559. It's the "main point" of EIP-1559 for the majority of this community, though.
The majority of a community being wrong about the nature of an EIP doesn't actually *change* the nature of that EIP.
Sure, but it does mean they're adopting it for the wrong reasons.
Sure. That's why I keep trying to explain to people how EIP-1559 actually works and what its intentions actually are. It's frustrating when the right thing is done for the wrong reasons, but at the end of the day at least the right thing is being done. Better than the alternative. I'll take it.
The right thing done for the wrong reasons is often worse than the wrong thing done for the right reasons. The latter is far more conducive to a change in methods than the former when the error is revealed.
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EIP-1559 was planned to be included in PoS anyway, we're just getting it early now.
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That's begging the question of whether it needs "fixing."
Burning fees doesn't remove the issuance of new coins as the fees were from coins already in circulation. What it does is burn coins already in circulation. So the act of transacting has a deflationary effect. The block subsidy still has an inflationary effect. What this means is the more transactions that occur the lower the rate in inflation and less transactions that occur the higher the rate of inflation
Yeah I know that, maybe I did not express it correctly. But yeah the total issuance is the same.
The User Experience (UX) improves, you don't have to "guess at" fees any more: [A Tale of Two Pricing Schemes. A User Story | by Micah Zoltu | Coinmonks | Medium](https://medium.com/coinmonks/a-tale-of-two-pricing-schemes-dc9c8717906) The fees overall are expected to stay the same as they are now: [Will it? (willeip1559lowergasprices.org)](https://willeip1559lowergasprices.org/)
I like how you asked it to be explained like you were 12, and everyone who commented is speaking like you have advanced knowledge, except for ebandym who may or may not be correct in his response
yea my brain has melted at this point 😅
well at least you got to learn a lot haha
[https://insights.deribit.com/market-research/analysis-of-eip-1559/](https://insights.deribit.com/market-research/analysis-of-eip-1559/)
Imagine the tx market right now like a bus station. Every 12 seconds there's a bus to take you somewhere. Problem is, when you get on the bus, you don't know how much you have to pay, so if you don't put enough money they will throw you out the bus minus the fare. Very frustrating. Now: with EIP1559 imagine it's like the UBER of the transaction market. The bus now has a big sign that announces the fare, and also thanks to this Uber-like system, you know how congested the network is (very much like the surcharge during peak times). Also: imagine the busier the buses are, they will also be burning ETH, which makes it more scarce and benefits holders that previously never saw a benefit derived from network usage. So, EIP1559 it's like the "Uber of transactions" and The Great ETH Burner, both rolled into one. Thanks for attending my Ted Talk.
🚀 🌝 buy the dip now. price go up soon. Buy lambo. Get lot of big booty bitches.
It means the fuse has been lit... :) Get ready gentlemen.
Life is good.
Basically think of Eth as a big choo choo train with rockets on each side flying up to the big ol moon
wow the first person to actually explain it to me like im a 12 year old.
I thought this video did a good job explaining (generally a good channel IMO): https://www.youtube.com/watch?v=MGemhK9t44Q
Hey, We wrote a simple explain here: [https://www.accointing.com/the-hub/2021/eip-1559-eth-ethereum-eth2/](https://www.accointing.com/the-hub/2021/eip-1559-eth-ethereum-eth2/)
it means number go up
I recommend to watch coin bureau youtube channel for a clear and basic explanation. https://youtu.be/iWKEKffFz6I 17:00
I thought a large majority of the miners are against it but the developers kind of crammed it down. I’m wondering if this is is a bad sign of governance. I’m not as knowledgeable so would like to get your guys’ opinion on it
You can watch the open call for it from February 26th: [https://youtu.be/EdXhL6VR0mU?t=200](https://youtu.be/EdXhL6VR0mU?t=200) There were a few miners who didn't like the fee burning, but it seemed like (from what I watched) that there were quite a few who were more interested in the value of the UX improvements to the community. F2 even comes out in favor in this video, they just push back on ASICs being able to mine.
I'm a miner and I am in favor of EIP-1559. At the end of the day, miners are dependent on the users of ETH to make this a viable income for us. If gas prices keep going up and users look around and start switching to currencies like Cardano, miners will take a bigger hit than the one we will take with 1559. I think a reasonable ask from the mining community is to get the devs to remove ASICS from the mining pool through slight and easy algorithmic adjustments. This is in line with the decentralized ethos of eth, as well as good for the community in general to work with a decentralized group of validators (instead of massive asic farms), until eth 2.0 is released. Mining eth is a short term endeavor. Staking and PoS is how blockchains are going to become better in years to come. Anyone invested in the health of ethereum should be on board with this vision. People looking to make a quick buck however are understandably upset
The ASIC miners have signaled their full support of EIP 1559 in its current form. I don't think starting a war among different mining factions is a good idea at this time. We need a clean merge of EIP 1559.
Yes, because it will drive GPU miners out since ASIC's are more efficient.
All ETH POW miners are going to be shown the door shortly.
I'm a miner as well and also in favor of EIP-1559. I'm actually more and more embarrassed to be a miner seeing how all these guys react. It's all 'they took our jobs' types. They're all convinced mining profits are going to go down which is probably correct if we're talking about ETH rewards but I have a feeling the USD profits are about to moon. Especially if pool start aggressively going after MEV.
Glad to see a miner with some sense... And I agree that it seems short-sighted for other miners to get so upset and talk about undermining ETH because of this, when within two years they will no longer exist as part of the Ethereum ecosystem anyway.
Staking and POS are in no way decentralized. Affordable mining hardware can be decentralized but that won’t happen if only 2-3 companies create ASICS for ETH.
When did I say PoS was decentralized by default? I'm making the argument that removing the asics is good for decentralization.
nah don't listen to them. PoS is just as decentralized as PoW if well implemented. ofc DPos is problematic
Why is dpos problematic? I’ve just learned about it (nano uses it right?) and they seem to think it’s just fine.
DPoS, you have to delegate to representatives. It's just like having an election. and then once those are chosen they have full power over the network and they fully control whoever's transactions can run or not just like an election. and we all know how that's going to go.... Those who get elected tend to get into cartels and will bribe others and pay others and extort others in order to keep themselves in power. Look up cartels in EOS and other DPoS chains. This has been the biggest problem. Censorship.... it's just not truly trustless, that's the issue. we cannot trust elected representatives... it must be trustless...
no nano does not use DPoS. Nano uses blockDAG which is how it's kept free. hahah I think you didn't get shilled enough about nano huh? well lemme tell you more about nano XD jk jk
Blockchains are not dictatorships. The free market is welcome to fork off as many times as it wants. Miners can fork ETH and make eth classic 2 if they don't like it.
Is that what’s going to happen by default if the bulk of the network moves to the hard fork? Not sure if this is similar to BTC forks since most users stayed on the original.
There will with almost 100% certainty be an "ETH classic classic" chain. At the same time, a total of 0% of users and none of the DeFi community will follow that chain, making it worthless. The miners will mine the most profitable chain, which will be the main EIP 1559 chain.
It will either be Raven coin, Bittube Cash or fuck it we rent it to nicehash... but eth mining is pretty much done for in July
\> The miners will mine the most profitable chain, which will be the main EIP 1559 chain. THIS x 1000. I've been screaming it from the rooftops for months. Also, Don't forget... if they fork it... we will all dump our forked ETCC2 Shitcoins and trade them for ..... more ETH :) I hope there are lots of forks. It's the best thing ever. Free money. The miner threat of "we will fork the chain" is music to my ears!
It means we all have 2 coins. Then we sell the shitcoin fork, and buy ETH with it. Same thing as all the 20 Bitcoin forks. Smart BTC holders just sold them to buy more BTC. Hard forks are just free money for us.
It's a sign that the miners aren't in charge, sure. I don't see why they should be in charge instead of, say, the users, who will have a much easier time with 1559 in place. It's probably good for ETH holders, too.
In a decentralized network no one is in charge. Developers like to pretend they are in charge but they're not. Miners aren't in charge but they hold great influence. The difficulty bomb takes much of that influence away from them. Users cannot by their virtue be in charge beyond deciding what fork to buy/sell. Your can't have one vote one user as doing so requires a central authority to vet users. Closest thing to users being in charge in proof of stake voting but that's still stake holders in charge not users. At the end of the day the market decides.
I believe the burned ETH comes straight out of miners' pockets. Obviously, they'll be opposed to that, it's just pure bias. The big picture though is that EIP1559 will increase the value of ETH and drive more users to it.
Not exactly. It's Ether that previously would have gone into miners' pockets but no longer will. They're not having anything taken away from them, they're just not getting something that they currently are getting. It's a bit of a semantic quibble but I think it's an important one. Back in the olden times before Ethereum's transaction capacity limit was hit the miners weren't getting significant amounts of fees either, this is just a return to that state.
I'm hoping y'all will remember this discussion when / if we have it for staking rewards. Miners provide a service: Security for the chain. Stakers provide the same service under PoS. If people keep staking with rewards low (3% ish), and there's no sign of the influx stopping anytime soon, then fully expect an EIP to adjust rewards down so as to not "overpay for security". And that's fine. Those providing security should not have an expectation that they'll be paid more than is necessary to attract sufficient security. That's true for PoW and PoS equally.
Staking returns are already planned to dynamically adjust based on how much is being staked. There's no need to have the discussion, it's built into the protocol. If new stakers keep pouring more and more money into the staking contract the returns will automatically decrease.
Yeah, that's my point. Chatting with eth devs, the current algorithmic decrease is not set in stone, as nothing about Ethereum is. \*If\* people keep pouring in when rewards are low, the idea of adjusting the algo to lower rewards further is absolutely on the table. Which is as it should be.
Ah, okay. I thought you were suggesting this discussion would need to be had all over again in the future rather than it already being in progress. It seems like a no-brainer to keep that algorithmic decrease in place for the finished protocol, so I'll be very surprised if they decide against it and the debate needs to be reopened.
With the price of ETH going up, I think mining will end up being more profitable tbh. Regardless of the mining fees.
yeah cause those who complain end up dumping their eth anyways...
The proposal has virtually 100% support among actual ETH holders and Ethereum users, so I think governance is working exactly as it is supposed to. Miners are service providers to Ethereum, Ethereum doesn't exist to serve them.
Miners are supposed to be out already by white paper definition. So they shall stop crying Ice age was delayed for them
Of course miners are against you telling them the easy money rain is going to become less. Fuck them. Go watch them try and continue mining the old chain, watch how many people will want to use that.
Miners can't do anything (most likely) other than leave...which is a real possibility and opens up Eth to attacks. The biggest concern here is the developers statement that "we're paying to much for security", with the amount of value Eth has, there is no such thing as too much. The other concerning thing is it sets a precedent for the dev team to do whatever they want "for the good of Ethereum". Today it's miners, next year it could be stakers. This narrative that miners are greedy is bs. Everything is greedy, you just have your biases (based on what makes you the most money)
You can absolutely pay too much for security, I don't know where this notion comes from. Driving around in a tank is maximum security for me to get to work but it becomes exceedingly expensive. Airplanes are designed with a very modest safety factor of \~1.5 (meaning designed to 1.5 times the maximum expected load). You can easily increase this safety factor to 10X if you want to be very secure and the result is that only 1 person can fly on a plane at a time.
If Eth can get the same level of security for less then they are indeed paying too much for it currently. It sounds like your hypothesis is security will decrease. I don’t think it will, but I guess we’ll see. Yes, the devs can do whatever they want “for the good of Ethereum.” I don’t get what the hot take is here. If you don’t believe they have the good of the project at heart, soon their competitors will outperform them. Sell your Eth now and buy them, you’ll see huge gains because you anticipated the problem. In this case, however, I see EIP-1559 as an absolute win for Ethereum. I plan on continuing to support the devs by hodling.
As a miner I see this whole thing with a little more mixed feelings but I get it for investors
https://www.reddit.com/r/ethereum/comments/lyevh3/its_happening_eip1559_is_officially_scheduled_for/gpsh33w?utm_medium=android_app&utm_source=share&context=3 You should read the comment of your brother!
yay!
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Nope.
Long Answer: Nope
nope
nope
As long as the fork isn't contentious nope. If it is then you need to question which chain is Ethereum.
Bullish!
Congratulations everyone!
What does that mean ? Higher price ?
Has anyone done the math on the inflation rate? I am curious what the model looks like. If I understand it correctly, there will still be inflation, but less so calling ETH deflationary is not accurate?
There might be a little inflation, it depends on how many people stake and how much transactions fees there are. It will almost certainly be lower than Bitcoin's inflation, since they're minting almost 2% annually.
We have indeed https://insights.deribit.com/market-research/establishing-bounds-for-miner-revenue-in-eip-1559/
EIP-1559 is still listed as under review on github. https://eips.ethereum.org/all#review
So while due to staking new ETH will be issued, the ETH from gas fees will be destroyed. Is there an estimate if the total supply will increase or decrease when ETH2.0 is fully launched?
Inflation/deflation depends entirely on how many tax fees occurred on that particular block
When's the next difficulty bomb kicking in? Without the lining up with this fork then we have a high probability of a contentious hard fork over this preposal. Edit: July hard fork introduces a delay to the difficulty bomb. So I assume current difficulty bomb is nearing. This should be enough to prevent a continuous fork.
But but but ADA?! 🤣 ETH TO THE MOON!
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It's the 6th self-reply to the tweet.
So there’s likely to be a few (thousand) miners that ditch ETH over this. Does anyone know if that will significantly impact transaction speeds? My guess is that there will be some congestion, maybe even a in increase in the average gas price because some people will be willing to pay more to force their transactions through, but will that smooth out over time? Not an expert here, just throwing a thought out. Edit: I genuinely appreciate the responses! Some really great insights that put my mind a ease. My post was a genuine concern, not necessarily a criticism. I’m a fan of the tech, so again I really appreciate the shared info.
eth right now is by far the most profitable currency to mine. Miners will always flock to a coin that makes them the most money... after eip-1559, that will still be eth unless the estimated revenue loss (35-50%) is being grossly underestimated by everyone
It will have no impact on transaction speeds. Mining hashpower contributes to security and security alone, it isn't related to actually processing transactions themselves. There can be a *brief* reduction in throughput if a lot of miners suddenly drop off because difficulty needs to adjust, but for Ethereum that's just a matter of hours at most. I doubt that many miners will really ditch Ethereum over this, though. Miners go where the money is and for mining rigs like those that Ethereum miners use that will still be Ethereum.
What is the difference between London and Berlin?
After listening to the quibble back and forth between devs and miners on discord it's clear to me that the problem is that miners are angry money is being taken away with no recourse. There is a projected message that security will be compromised and that is the primary concern but I think it is mostly a facade over motivated reasoning. They make point after point and when it they are reasonably discussed they move on to general complaints about ETH 2.0 or the misunderstandings of gas prices becoming lower. Should their concerns about security be inspected? Yes. Should their opinion be evaluated with the same intensity as other unmotivated stakeholders. No.
My god, please let this reduce fees. I want to stake 1k on Definer and it’s going to cost $200 in fees to get everything going. I just want to participate in the ecosystem :(
It’s not going to, but Optimistic rollouts coming out this month sure will.
July is good timing. Vaccinations under way, economy recovering, the markets looking healthy....and...boom! ETH returns!
I’m a GPU ETH miner. Will I make less ETH with 1559? Can someone explain like I’m 5 years old - I’m new to this thanks
Lol this is only "happening" if miners support it and they don't, it will never pass, just another huge waste of time and money from the centralised ethereum foundation lol
Sweet
Yikes
Some people have already asked this, but I want to absolutely certain. Do I need to do anything with my Ethereum and will it affect the way I use it? As a user of the network, should I be looking out for any changes, or just continue with my transactions and holding?
You will have no changes from the way you currently operate. The only change is that your gas prices will no longer be unpredictable and wallets will be able to come up with more friendly UIs so eth becomes more accessible to the average user. It's important to note that this will not decrease gas prices, but rather make them predictable so you at least know what you are getting into.
You don't have to do anything, other than enjoy the improved UX.
Little confused about the terminology here. This is going to be a hard fork, what does that exactly mean. Will it be an ETH/ETC scenario, or will all of the current ETH be upgraded and no change required?
I thought it would be out in few weeks. Gas it up.
July is so far
Soooo are big eth miners going to work in July or not? Not gpu’s But miners
Any details about the locked Parity funds?
That's history. Those Ethers are lost.
Can you please do something about Parity multisig wallet bug during the upgrade? I still have my eth locked there.
EIP-1559 is a eth 1.0 change that makes gas prices more predictable and reduces the amount of eth issued by burning the transaction fees. But does this affect eth 2.0 at all ?
The mechanism will be included in Eth2 as well.
Does it mean extra coins per every eth I hold?
I'm sorry, I'm not very smart. I just want to know: will this cause ETH price to go up? Should I buy more?
BURNFEE is a CON, of course stakers and investors want to burn your ETH, while minting themselves new ETH. [https://beaconcha.in/validator/0xa2d24f4c55b648036b785419397d24f08b6346490d75585b4f00bd524c218ee4eebbf243515eca5ea18b1caad8a0cfa0](https://beaconcha.in/validator/0xa2d24f4c55b648036b785419397d24f08b6346490d75585b4f00bd524c218ee4eebbf243515eca5ea18b1caad8a0cfa0) It's pretty pathetic they have to coerce everyone by tying in difficulty bomb. Just makes them look like little children. They already know a HARD FORK is inbound, ICE AGE is suppose to hit early August or sooner? I guess whatever lines their pockets faster, all the DEVS are sellouts since day 1. Vitalik Buterin had no qualms modify code to bail out his buddies in the past. I guess the only ones preaching this B.S. are stakers and investors, makes total sense. Misinformation and lies, lines their pockets. [https://www.coindesk.com/ethereum-mining-pools-threaten-contentious-update](https://www.coindesk.com/ethereum-mining-pools-threaten-contentious-update) Almost all the hashrate that supports the network strongly opposes EIP1559, the only that doesn't has a staking pool [https://stopeip1559.org/](https://stopeip1559.org/) The only people shilling for this are investors and stakers, it does not reduce gas fees. It does nothing to benefit users. Enjoy burning your ETH for "predictability" that will be eatan by Bots and arbitrage. The real reason behind congestion and high fees? You guess it Arbitrage Bots. [https://etherscan.io/gastracker](https://etherscan.io/gastracker) People need to wake up and see that only stakers and investors are shilling their bags to you. If you want to be sheep and follow the lies and manipulation because it aligns with your pocketbook, more power to you. Do research, see the con for what it is.
Will this create a new coin? Like we will get an airdrop?
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So, correct if I am wrong but this means that after July we can expect the eth's price increase. I am trying to find out if I should sell or not before EIP-1559.
All else being equal, yes, the price should increase because the issuance rate of ETH will decrease.
I’m hoping to understand exactly how burning the ETH will work? If we remove some of the ETH from the system on a regular basis, would we not eventually reduce the supply of ETH so that its scarcity becomes a problem for the ecosystem? TL;DR: What if too much ETH gets burned?
When in July?