Ethereum’s new commission system could be launched this year


Get real time updates directly on you device, subscribe now.

A proposal to improve Ethereum EIP-1559, which provides for the establishment of a fee market instead of the model currently in use, is being prepared for launch this year. This was announced by developer Danny Ryan.

“Research and development in this area has been gaining momentum over the past 12 months. We are optimistic about the launch of EIP-1559 commission mechanics on the mainnet in 2021, ”he said.

A week earlier, developer Abdelhamid Bakhta from the Ethereum studio ConsenSys said that he has been working on the proposal for over a year, and the implementation for clients Besu, Geth and Nethermind has already been completed. This statement surprised even Vitalik Buterin, as most of those who were not actively involved in the preparation of EIP-1559 believed that there was still a lot of work to do. An economic analysis of the supply is under way to mitigate risks.

EIP-1559 provides for the creation of a market for commissions, which will make the cost of processing transactions more predictable. The base commission will be set based on 50% network utilization and can be adjusted based on current needs for optimization purposes. Users can optionally pay larger amounts to process their transactions if the issue is really urgent for them. Another important difference from the current model will be the burning of the base commission paid for processing the transaction, instead of transferring the entire amount to the miners.

As expected, not everyone welcomes such changes. In one day on January 11, miners earned about 20,000 ETH ($ 25 million) on commissions, which exceeds the value of block rewards. Opponents of the proposal believe that the developers want to rob them in the interests of wealthy speculators, supporting the growth of the ether rate by limiting emissions. The developers, for their part, state that this does not in any way affect the speed of preparing the update, and in the case of a fork, the choice of the correct chain will remain with the users.

For the foreseeable future, a Berlin hard fork will take place on the Ethereum 1.0 blockchain, however it does not include EIP-1559. Thus, according to estimates, the introduction of the commission market may take place this summer.

Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.