Ethereum News

Two days after the London Hardfork, $ 14 million worth of ether was burned; Is the Ethereum 1559 improvement plan effective?


More than $ 14 million worth of ether has been taken out of the cycle since the launch of Hardfork London. Despite the major changes that this update and the “EIP-1559” plan have made to the Ethereum network, some experts believe that this plan may not be as effective as expected.

to the Report CoinDesk has taken more than 5,000 ethers, or $ 14 million, out of the cycle since the launch of the 1559 improvement plan in the Ethereum Blockchain. This is equivalent to 36% of the total units issued during this period.

Two days after the London Hardfork, $ 14 million worth of ether was burned;  Is the Ethereum 1559 improvement plan effective?
Comparison chart of exported and incinerated ether units from the time of London Hardfork

Ethereum Transaction Fees rose slightly from 0.003 to 0.005 ether since the launch of the London Update at 12:33 (GMT) on Tuesday. In addition, the block size, measured in the Ethereum network in units of gas, is moving toward the predetermined target of 15 million gases.

At first glance, the Ethereum 1559 improvement plan seems impressive. Some of the commissions are burned and the block volume is dynamically priced so that the average block size reaches the appropriate level. However, a closer look at the plan reveals evidence that the Ethereum 1559 improvement plan may not be very effective in its main goal, which is to make Ethereum fees predictable for network users.

Resize the block

Now, with the launch of the 1559 improvement plan, the space of the extracted Ethereum blocks fluctuates dramatically from completely full to completely empty. Tim Beiko, president of the All-Core Developers Forum, which is held every two weeks, said the reason for this is the volume of transactions eligible to enter each block, depending on the minimum wage or base fee. Which is determined by the network, gets bigger or smaller.

Biko said:

It can be said that we have a block that increases the base fee when filling. It is likely that there will not be many new transactions until the next block is reached. [در این صورت کاربری] Will not be willing to pay higher figure.

Two days after the London Hardfork, $ 14 million worth of ether was burned;  Is the Ethereum 1559 improvement plan effective?
Graph of changes in the use of block volume between different Ethereum blocks

An Ethereum user, known as Face Shaver, described the incident as a “mismatch of network incentives” and said it could lead to many problems due to the unpredictability and instability of fees for ordinary users. Be networked.

Shaver said in this regard:

It is not easy for ordinary users to predict what the network fee will be in the next 1 or 2 minutes. If you want to enter your transaction into the network, both in this block and in the next block, the maximum fee change you will be justified by will be one-eighth of the current base fee. But if we consider a normal user who is price sensitive and can wait 1 or 3 minutes to complete his transaction, we have to wait and see what happens to the commission in the next 3 minutes.

Shiver and Biko both believe that it was difficult to predict Ethereum’s optimal commission for the next three minutes or so, as difficult as it is now with the 1559 improvement plan. The Ethereum 1559 improvement plan helps users predict instant transaction costs, but given that supply and demand for block volume vary from block to block, users cannot predict how much the Ethereum network will charge in a few moments. .

Bico said it was always expected that the Ethereum 1559 improvement plan would be accompanied by such fluctuations that would affect block size and base fees. He believes, however, that the average user can still benefit from this plan by being aware of the base fee optimized for the transaction he sends to the Ethereum network instantly, without having to guess or predict future block fees.

Network incentives and burning commissions

Smart users will always be careful not to pay more than necessary. If users are confident that the commission is going to increase in the next block, a financial incentive will be created for them to track it in the current block instead of dedicating most of their transactions to the next block. On the other hand, if users are confident that the commission will decrease as they move to the next block, a financial incentive will be created for them to dedicate most of their transactions to the next block.

According to Mojtaba Tafagh, an assistant professor and faculty member at Sharif University of Technology, the amount of gas used in each block may exceed the size of the targeted block in the long run, which could pose problems for network node operators responsible for publishing and maintaining transaction data. Create.

Tafaq said:

If the block volume fluctuates a lot, users can send more transactions to the network on average. So if you create sharp fluctuations that alternately completely fill or empty the space of each block, you can consume more gas than the target of each block and at the same time the base fee does not increase. We encourage users to swing and swing [بیشتری] Let them consume more gas.

Currently, both developers and researchers such as Mojtaba Tafaq are waiting for the impact of the 1559 improvement plan on Ethereum performance for decentralized applications and other network users.

According to Dune Analytics, more than 90% of Ethereum transactions have not benefited from the 1559 improvement plan in the two days since the launch of the London Update.

.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button