EIP 1559 Block Date Gets Announced This Week (July 9th)
EIP–1559 is a proposal to make Ethereum transactions more efficient by using a hybrid system of base fees and tips to more evenly incentivize miners in periods of high and low network congestion. In the proposal, a base fee is the algorithmically determined price you pay for a transaction on Ethereum.
We don’t know an exact date yet but what we do know is the earliest will be August 4th.
Originally it was projected to happen in mid july, but that date has been pushed back.
Eip 1559 is going the change the way the consensus mechanism works.
Being proof of work etheruem pays out a block reward and pays out fees on top of the block reward to miners
EIP1559 is going to change the fee structure to remove a portion of the fees and burn them in a manner that ethereum goes deflationary, and make fees more predictable
It does this by calculating a base fee and a tip to the miner to sort transactions
the base fee is what is going to be burned.
Mining profitability is expected to go down 10-15%
In past month we have seen fees sky rocket to hundreds of GWEI
But recently we’ve seen a decrease in fee’s due to flash bots coming in and helping reduce fees for the end users
and layer 2 solutions and side chains like polkadot and Polygon Matic
The Merge to Ethereum 2.0 is expected to happen in Q1 of 2022
Follow @Smashblockchain for more updates!
