One of the most significant and controversial Ethereum updates has been approved for inclusion in the cryptocurrency network code. The Ethereum EIP-1559 improvement proposal will be launched alongside the London hard fork expected to take place in July. The leading developers of the project came to such a decision during the conference call on Friday. EIP-1559 will be included in London along with at least five other updates. During today’s call, no developer spoke out against the proposal.
EIP-1559 changes the fee structure to improve the user experience. Under the current conditions, the user sends a commission for including the transaction in the block to the miner. After the update, the base commission will be absorbed by the network and burned, and only the amount paid in excess of it will go to the miners. The base fee will be determined by the protocol, making the cost of using the blockchain more fair for all users.
The offer is actively supported by developers and users in light of the rapid growth of commissions in recent years. As expected, miners are not satisfied with this option. In February, their revenues totaled a record $ 1.3 billion, of which about half came from commissions. The relatively small mining pool Flexpool launched a marketing campaign against EIP-1559 and gained support from other pools, including the largest Ethermine and SparkPool. Over 60% of the Ethereum hashrate is against the proposal. At the same time, F2Pool with 10% of the computing power of the network supports it.
The developers decided to update the commission model along with another deferral of the difficulty bomb. It is embedded in the code to quickly increase the difficulty of mining if the updates are not delivered at the set time. As explained by the curator of Geth client Peter Siladhyi, this is how the developers can ensure that no one tries to stay in the old chain without facing technical difficulties. An option was also considered in which the complexity bomb would remain in force, further stimulating the early transition to the Ethereum 2.0 network on the Proof-of-Stake consensus algorithm, but it was excluded taking into account the interests of miners. The final revision of the proposal is scheduled to be completed in April, after which there will be a few more months left for testing it.
“EIP-1559 is the final piece in Ethereum’s monetary policy. It is a scarcity mechanism that no other commodity in the cryptocurrency space has for money. EIP-1559 means hundreds of millions of dollars in ETH will be burned annually. This could lead to negative annual emissions after the merger with PoS, ”writes the founder of Mythos Capital Ryan Sean Adams.
Despite widespread discontent, miners are expected to not actively discourage upgrades, such as refusing to process user transactions with EIP-1559. Such an attack will most likely lead to a decrease in the price of the cryptocurrency, due to which the miners themselves will ultimately suffer. The Hasu researcher believes that sooner or later, miners will most likely fork Ethereum, but they will not do it because of EIP-1559.
“They have one bullet and need to save it until the end of the Proof-of-Work mining,” he says.
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