I guess almost all of our readers would agree that we all are plagued by the Eth gas fees this DeFi season, right?
Well, this all could have been averted had a consensus been achieved in implementing the Ethereum's EIP-1559 proposal.
- A public report by the duneanalytics sheds some light on how much ethereum would have been burned in the last year.
- Its about 969835 Ethereum as of the time of writing this blog.
- Apart from burning the tokens, there is one more thing that was proposed in this proposal, and that was a flat fee scheme for transactions!
- This would have surely dealt with the DeFi soaring this season, and we would have gotten much more interest in the DeFi space.
- The major blocker in the adoption of DeFi had been the super high Eth gas fees for the transactions.
- Due to DeFi craze, there was a surge of users wanting to get early into the game, and that resulted in a lot of tranasactions.
- So since the current ETH PoW has limited block times, there is only one way to clean up the transactions backlog in the mempool: give priority to higher paying customers in the form of fees.
- This works similar to the trades: as the demand rises, the price rises. One can say that the ETH gas fees is an economy in itself at play!
- But since the Ethereum community could not reach consensus for incorporating this change in the Ethereum network, it never came to fruition.
We hope, ETH 2.0 comes clean and fast!