If you’ve been following Ethereum over the past few months, you’ve likely heard of EIP-1559. EIP, of course, standing for Ethereum Improvement Proposal — a design document outlining a change/new feature to the blockchain.
In short, the proposal will change how transaction fees work on the crypto network, making fees more predictable while burning ETH when transactions are sent.
If implemented, EIP-1559 will seemingly be the first change of this magnitude to a blockchain’s fee model.
Users of the network are responding to the proposal by donating to its development and acceptance, to the tune of thousands of dollars worth of the crypto stablecoin DAI.
Ethereum users raise tens of thousands of dollars
In April of 2019, some of the top blockchain developers and researchers came out with EIP-1559. One of the authors of the proposal was Vitalik Buterin, the Russian-Canadian founder of Ethereum.
The premise of the proposal was that the fee model Ethereum had (and currently has) is “inefficient and needlessly costly to users.” This comes despite Bitcoin and other cryptocurrencies having a similar model, where users bid in a market to get their transactions included in blocks first.
To solve these inefficiencies, the authors proposed the establishment of a “market rate” for transactions and will burn a majority of the ETH spent on each transaction. Bankless’ David Hoffman wrote in 2019 on the proposal:
“The purpose of EIP 1559, according to Eric Conner, is to provide wallets and users a much needed improvement to the user-experience of gas management. The way that EIP 1559 solves the gas-management problem also improves Ethereum’s monetary management system.”
The EIP flew under the radar for months, with the proposal only going mainstream in Ethereum circles more recently.
Yet many are already excited about the change.
The EIP-1559 @Gitcoin Grant is up