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Update that will change Ethereum rates has a date after successful testing

The EIP-1559 which promises to bring down Ethereum fees will finally be activated on the main network

Ethereum developers announced on Thursday (15) that the testing phase of the London update was a success and that the new enhancements are now ready to be activated on the main network. The hard fork will take place in the 12,965,000 ETH block, scheduled to be mined between August 3rd and 5th.

In the official publication, the Ethereum Foundation advised that miners and node operators must update the software to a London compatible version. On the other hand, common users who own or trade ether don’t need to do anything for the update to arrive.

The hard fork introduces five new Ethereum Improvement Proposals (EIP) and is one of the most anticipated updates by the community as it promises to bring down the cost of the network. The improvement responsible for this is the controversial EIP-1559 that will change the destination of fees charged during transactions.

## New fee system

Currently, miners are rewarded with freshly mined ether plus user-paid gas fees. With the arrival of EIP-1559, however, the fees no longer go to the miners and are automatically ‘burned’, taking those tokens out of circulation forever.

The hard fork introduces five new Ethereum Improvement Proposals (EIP) and is one of the most anticipated updates by the community as it promises to bring down the cost of the network. The improvement responsible for this is the controversial EIP-1559 that will change the destination of fees charged during transactions.

## New fee system

Currently, miners are rewarded with freshly mined ether plus user-paid gas fees. With the arrival of EIP-1559, however, the fees no longer go to the miners and are automatically ‘burned’, taking those tokens out of circulation forever.

Currently, Ethereum works like an auction, the higher the gas fee paid by a user, the greater the chance that your transaction will be grouped into the next block. The problem is that with the intensive use of the ETH ecosystem, this format makes the network slow and expensive.

With the arrival of EIP-1559, users will only pay a basic fee. However, there will still be a tipping mechanism to give the trader the option to reward a miner for expediting their transaction.

August’s hard fork brings four more improvements — EIP-3198, EIP-3529, EIP-3541, EIP-3554 — that make the network more stable and efficient, as well as expanding the new fee system for smart contracts.

In Thursday’s release, the Ethereum Foundation also announced that it has doubled the rewards offered to community participants who find vulnerabilities related to the London update until it is activated on the network in August.

What do you think?

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One Comment

  1. Can someone explain to me how this is not a contradiction?

    > Currently, miners are rewarded with freshly mined ether plus user-paid gas fees. With the arrival of EIP-1559, however, the fees no longer go to the miners and are automatically ‘burned’, taking those tokens out of circulation forever.
    >
    > Currently, Ethereum works like an auction, the higher the gas fee paid by a user, the greater the chance that your transaction will be grouped into the next block. The problem is that with the intensive use of the ETH ecosystem, this format makes the network slow and expensive.
    >
    > With the arrival of EIP-1559, users will only pay a basic fee. However, there will still be a tipping mechanism to give the trader the option to reward a miner for expediting their transaction.

    So I get that burning some ETH decreases the overall ability to capture mining and recirculate everything but from what I’ve heard, this isn’t really going to eliminate the fee market. What’s to stop miners from behaving as they do now? Prioritizing the highest tips for faster service?

    There is still a limit to the block size, and there will still be some transactions left waiting when each block is out, during times of peak load. I’ve heard some people saying that this is going to help fix the fee problem, and others say “well no not really, in fact it’s barely even going to act to control inflationary effects of an effectively unbounded mining algorithm, though that is likely going to be its primary effect.”

    Which is it, I guess?

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