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.