Recovery Seed Backup Devices

EIP 1559

EIP 1559 change in mining fees

Ethereum is going to implement an improvement that could drastically reduce fees.  They are going to change the way the fee structure works.  Fees will be standardized and adjustable but not by more than a small percentage to help prevent network shocks.  In order to speed up transactions you will be able to tip miners which may be able to replace some of the missing mining income.

If this does what I think it should do, it should make Ethereum transactions more affordable for the average person.  Perhaps it will even make Dapp fees within range.  If Ethereum could reduce the fees, there would be much less incentive to use a competing chain.  In addition, they are going to burn the transaction fee rather than pay it out to the miners.  This means that the amount of Ethereum coins in circulation should go down.  This affect should result in a price increase.  Imagine if Bitcoin reduced supply what would happen.

Supply reduction seems to be the thing to do.  Pancake Swap just reduced emissions too.  The more coins start to reduce the amount being created to the point where every week less tokens exist, it should put strong upwards pressure on the price of the coin.

This update, called London, includes Ethereum Improvement Proposal (EIP) 1559, which aims to change the way transaction fees, also known as 'gas fees,' are calculated. This and other changes are expected to eventually be felt in the price of the token, which is above $2,600 on Thursday after topping $4,000 in May and falling below $1,900 in July.

Until now, users had to bet how much they were willing to pay for a miner to pick up their ether transaction, which could end up being quite costly. With the proposed EIP-1559, this process will be handled by an automated bidding system with a fixed fee amount that fluctuates based on network congestion. Another important change under EIP-1559 is that part of the fee for each transaction will be 'burned,' or taken out of circulation, which will begin to reduce the supply of ether and ultimately boost its price.

Leave a comment

Please note, comments must be approved before they are published