Ethereum's EIP-1559 Proposal would have checked the soaring fees this DeFi Season

Ethereum's EIP-1559 Proposal would have checked the soaring fees this DeFi Season

By nerd0x | 24x7News | 17 Oct 2020


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!



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