Ethereum (ETH) developer Péter Szilágyi praised EIP-1559 and its ETH burn mechanism as “a great equalizer.” January 16 Go to X in Szilágyi respected EIP-1559 provides “a level playing field between validators and regular users.”
Developer: EIP-1559 is a “great equalizer”.
Following the implementation of EIP-1559, Ethereum adjusted the way users bid for gas fees, introducing a “base fee” that is burned or sent to the wallet unrecoverable. The data from ultrasound money so far is show Over 3.9 million ETH were destroyed.
Last week alone, the Ethereum network automatically “burned” ETH supply by sending over 21,100 ETH out of circulation.
In particular, Szilágyi mentioned the benefits that regular users can gain from EIP-1559. With this implementation, validators (miners before Ethereum transitioned to a proof-of-stake blockchain) will no longer have the power to arbitrarily adjust gas limits and transaction fees.
Previously, this margin created what developers describe as an “imbalance” that made it difficult for “average users to compete.” However, this implementation requires everyone to comply, regardless of their status as a validator, founder, or user.
In EIP-1559, the “base fee” adjustment is set at the protocol level. It is this base fee that causes the network burn to gradually deflate ETH by reading the number of coins that have been out of circulation since EIP-1559 was activated in early August 2021. Nonetheless, senders can incentivize validators by giving them “tips.” Prioritize transaction verification.
Achieving stability and predictability, Ethereum capped at $3,000
Szilágyi’s comments reflect a growing consensus among Ethereum advocates regarding the positive impact of EIP-1559. While much of EIP-1559 is obsessed with the price implications of the proposal, there is much more to be gained.
Most importantly, from a user experience perspective, it is now easier to predict how much a caller will pay for a transaction. This is especially important when the network is congested. Additionally, despite Ethereum gas fees being relatively high, which Szilágyi deemed a “bad idea,” EIP-1559 stabilized the network.
The ETH burn is due to reduced inflation in Ethereum, a network that has no cap on total supply like Bitcoin. In the long run, prices may benefit from this offer. However, prices remain strong in the short and medium term. Nonetheless, upside is limited to the psychological round figure of around $3,000.
Featured image from Canva, chart from TradingView
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