Eip1559 has already million

eip1559 has already million

The ‘correct’ gas price is currently determined by a blind auction – each user chooses the amount they are willing to pay, a miner selects the transactions with the highest gas price, and each user included in the block pays the amount they bid.

As almost anyone who’s used Ethereum can tell you, this model for picking gas price has two key problems. The first is that the gas price needed to be included in the next block can be extremely volatile, making it very difficult for a user to predict what price they’ll need to choose.

Take for example this series of blocks from June 2020, where the average gas price per block increases by 1000% for a single block:

Unfortunately this kind of swing in gas price is far from rare, and far from the most dramatic Ethereum has seen.


Arguably Ethereum’s most popular update to date, EIP-1559 introduced a mechanism that burns a portion of the gas fee with every Ethereum transaction.

EIP-1559 was devised to adjust Ethereum’s fee market as Ethereum gas fees previously adopted an auction system that made transaction costs unpredictable. With EIP-1559, Ethereum users pay a minimum fee for transactions known as the “base fee,” and they can add an optional tip to miners to get their transaction through faster during periods of high congestion. EIP-1559 also adds deflationary pressure on ETH and reduces the supply over time.

Per ultrasound.money, Ethereum currently burns just over 6 ETH per minute.
A big chunk of that is consumed on OpenSea, the world’s biggest NFT marketplace.

The new proposed solution is to start with a BASEFEE amount which is adjusted up and down by the protocol, based on how congested the network is.

To accommodate this system, the network capacity would be increased to 16 million gas, so that 50% utilisation matches up with our current 8 million gas limit. Then, when the network is at 50% capacity, the BASEFEE increments up slightly, and when capacity is at <50%, it decreases slightly. Because these increments are constrained, the maximum difference in BASEFEE from block to block is predictable.

This then allows wallets to auto-set the gas fees for users in a highly reliable fashion.

It is expected that most users will not have to manually adjust gas fees, even in periods of high network activity.

Eip1559 has already millionagents

To start using EIP-1559 all you need to do is make two changes to the transactions you’re sending:

  1. Remove gasPrice: because of the switch to the base fee model, this won’t be needed anymore!
  2. Add two new parameters: maxPriorityFeePerGas: a cap on the priority_fee specifically maxFeePerGas: a cap on base_fee + priority_fee, in other words the total amount your willing to pay per gas

In reality, step 2 isn’t even strictly necessary, since Alchemy and Ethereum nodes both support reasonable defaults for each value:

  • maxPriorityFeePerGas: eth_gasPrice – base_fee
  • maxFeePerGas: maxPriorityFeePerGas + 2 * base_fee

With that in mind though, power users will likely want to adjust these values based on the priority of their specific transactions, and desire to save on gas fees.

Eip1559 has already millionaire

When choosing your own values, you’ll need two values to do so: the expected inclusion fee required and base fee for the next block.

To get the expected inclusion fee, there is a brand new endpoint called eth_maxPriorityFeePerGas. Note that this endpoint is the spiritual successor to the legacy eth_gasPrice, which will continue to behave as it does now to maintain backwards compatibility.

To get the base fee for the coming block, you can simply fetch the latest mined block and look at the ‘base_fee’ value included.

A Final Note on 1559

EIP-1559 promises a number of meaningful benefits to developers and end users alike, including more predictable gas prices and mining times.

Eip1559 has already millioner


The new proposed solution is to start with a BASEFEE amount which is adjusted up and down by the protocol, based on how congested the network is.

To accommodate this system, the network capacity would be increased to 16 million gas, so that 50% utilisation matches up with our current 8 million gas limit. Then, when the network is at 50% capacity, the BASEFEE increments up slightly, and when capacity is at <50%, it decreases slightly. Because these increments are constrained, the maximum difference in BASEFEE from block to block is predictable.

This then allows wallets to auto-set the gas fees for users in a highly reliable fashion.
It is expected that most users will not have to manually adjust gas fees, even in periods of high network activity.

The official transcript of the call can be found here.

Implementers’ Call #3

The latest call regarding the implementation of EIP-1559 was held on Wednesday, 24th June and was the 3rd such Implementers’ Call to take place. The agenda of this call included:

  • Status updates from implementers
  • EIP-1559 & Escalator Fees combination/unbundling
    • @MicahZoltu’s comment
    • @barnabemonnot’s proposal
    • Derbit’s analysis of Escalator
  • Testing/Analysis
    • Testnets
    • Formal analysis/proof
    • Simulations
  • EIP-2718: Typed Transaction Envelope
  • Community funding
  • Anything else (please leave a comment)

The details & official agenda for the call are here.

If the changes proposed take place, Ethereum would look like the following:

  • Users get better fee estimations and UX,
  • Miners/validators still get paid via the ‘tip’ and protocol issuance,
  • Apps that use Ethereum pay their dues in burnt ETH,
  • ETHs fundamental value increases protocol security increases apps inherit that security.

Official Implementation Discussions

To date there have been 3 Implementers’ Calls, in which the EIP-1559 proposal has been the focus. Each of these calls were live-streamed, however, the only call video recording available is for the 3rd call.

Implementers’ Call #1

The first Implementers’ Call took place on Tuesday, 30th April.

  • Implementing the new Typed Transaction Envelope as discussed in the Ethereum Improvement Proposal EIP-2718,
  • The addition of resources to speed-up development.
  • Research & Implementation Updates

    As of last week, two Ethereum clients have EIP-1559 implementations – Vulcanize’s Geth fork and Besu. Both are running early Testnets to clear-up specifications, and iron out any implementation issues.

    Alongside the above in the core Eth client space, Filecoin are also testing a 1559 implementation, and all seems to be going well on that front.

    Jeromy Johnson, a software engineer at Filecoin stated:

    “The EIP code appears to be doing its job”

    — With regards to an ongoing test on the network.

    Regarding both Geth and Besu, it seems that while there have been minor bug fixes implemented; there are no major updates.

    A rough number thrown around for client teams was ~1 dev for ~6 months, per team.

    Conclusion

    A community fund was set up for this EIP on Gitcoin, and has already raised a very respectable amount. These funds will go a long way to making sure this EIP gets the love it deserves; so that it can be safely included in the Ethereum protocol. You can donate to the grant here.

    In a similar conclusion to my last article on 1559, I find myself very excited about the improvement overall, and once again; my absolute love, thanks, and adoration goes out to all of those contributing to the cause! 💚

    For those interested in past transcripts and recordings, you can find them all here.

    I would love to hear your opinions on EIP-1559, and I encourage you send me any comments & opinions you may possess on the subject.

    With EIP-1559, Ethereum users pay a minimum fee for transactions known as the “base fee,” and they can add an optional tip to miners to get their transaction through faster during periods of high congestion. EIP-1559 also adds deflationary pressure on ETH and reduces the supply over time.

    Per ultrasound.money, Ethereum currently burns just over 6 ETH per minute. A big chunk of that is consumed on OpenSea, the world’s biggest NFT marketplace.

    While Uniswap was previously the biggest gas guzzler on the network, a boom in the NFT market has led to OpenSea taking the top spot, with ETH transfers in second place ahead of Uniswap transactions.

    Ethereum Prepares for the Merge

    After the London hardfork, Ethereum’s next major protocol update is its long-awaited move from a Proof-of-Work to Proof-of-Stake consensus mechanism.

    Uniswap transactions.

    Ethereum Prepares For The Merge

    After the London hardfork, Ethereum’s next major protocol update is its long-awaited move from a Proof-of-Work to Proof-of-Stake consensus mechanism. The update, popularly referred to as “the merge,” will see the blockchain’s consensus layer (otherwise known as the Beacon Chain) merge with the execution layer (Ethereum mainnet).

    Anticipation for the merge has been building this week as Ethereum successfully completed a rehearsal of the event on the Kiln testnet (though the Ethereum Foundation’s Tim Beiko reported that one client failed to produce blocks during the runthrough).

    However, fans of the top smart contract network had been counting down to the merge prior to this week; the move to Proof-of-Stake is expected to be one of the biggest events in the blockchain’s history.

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