Ethereum Developers Begin Review of Fee Market Issuance

eip1559 code pr dec 2020 768x382

Ethereum developers have began a review of an algorithmic change to the pricing of network fees that could potentially lead to a reduction in ethereum’s total supply. The Ethereum Improvement Proposal (EIP) 1559, sets a base fee which is algorithmically calculated based on whether the network is congested or otherwise, with it increasing or decreasing accordingly. The aim is to reduce costs especially during congestion times so that people don’t have to overpay due to guesswork, but instead can predict the fees due to this algorithmic measurement. According to Status devs, “this then allows wallets to auto-set the gas fees for users in a highly reliable fashion.” In an additional change this base fee is then burned, rather than given to miners as currently, unless the user adds an extra fee on top of the base fee. At times this can lead to huge amounts being burned at about 5,000…

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