Ethereum would have cheaper commissions in less than 1 year with EIP-1559

By November 20, 2020Ethereum
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As estimated by developer Justin Drake, proposal EIP-1559, which seeks lower fees on Ethereum, it could be ready to be incorporated into the network in less than a year. This was said in the last AMA session (“Ask me anything”, for its acronym in English) that took place on Wednesday on the Reddit platform.

For this researcher from the Ethereum Foundation, “it has improved a lot lately” in the development of this proposal. The organization he works for, he explained, supports the advancement of EIP-1559 “with a significant grant.”

None of the developers who participated in the AMA, among whom was the co-creator of Ethereum, Vitalik Buterin, explained why the delay was so long. The proposal was introduced in March 2019 and, since then, has been under development and discussion before being incorporated into the protocol.

The problem of high fees in Ethereum increases when the network is congested. This happened on numerous occasions this year. The massive use of decentralized finance (DeFi) protocols and the UNI token airdrop, for example, were causing network congestion.

Why some mining pools reject this proposal on Ethereum

As CriptoNoticias reported, EIP-1559 is rejected by some mining pools. There is uncertainty about how miners could incentivize users to tip higher.

Is that EIP-1559, unlike the current protocol, adjusts the base commission according to the demand of the network and A single commission offer is sent per transaction. This base commission does not go directly to those responsible for mining, but is burned. The miners, on the other hand, receive what is called a “tip” as an incentive.

To avoid a possible “bidding war” with tips, such as with commissions, the Ethereum Foundation propose solutions from the wallet side. These could detect network congestion and in that case offer users the ability to set a low or high priority for the transaction.

EIP-1559 and Ethereum 2.0: complementary developments

During the course of the AMA, Ethereum developers also referenced EIP-1559 within version 2.0 of the network. There, the proposal is included by default. “EIP-1559 is part of the Ethereum 2.0 specification,” confirmed developer Danny Ryan. He added that there “similar mechanics will be used to burn commissions and establish the price of gas” and explained that the investigations in both networks complement each other.

There is a lot of overlap from the theoretical point of view, so most of the research and development that is carried out for the EIP-1559 on the Ethereum 1 mainnet is based on the design and understanding of the use of this tool for Ethereum 2.0 data markets.

Danny Ryan, developer of Ethereum Core.

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