eip1559 already million eth

Aside from the little-known XEC being up nearly 11%, AAVE is the top-performing large-cap altcoin after adding 9.54%.

BTC technical analysis: Taking a back seat to ETH

The price of BTC is trying to rally alongside ETH and Ethereum-based DeFi tokens, but resistance still sits overhead around 40,000 USDT. With mainstream media covering Ethereum’s mainnet upgrade and many traders looking to play ETH’s price action, BTC may struggle to gain much bullish traction in the immediate term.

ETH technical analysis: New supply-and-demand dynamics

The price of ETH has broken out in a big way ahead of and after the implementation of London.

Ethereum’s London hard fork has gone live and its effects are already underway. The network upgrade included a specific improvement called EIP-1559, which was designed to simplify how transaction fees are paid.

But part of the new mechanism involves burning a portion of the transaction fees, removing them from the circulating supply of coins. And while new ether (ETH) is being issued every block, this reduction in supply is helping to counter that — effectively reducing the network’s rate of inflation.

And so far, 213 ETH has already been burned, at a value of $559,000 — according to block explorer Etherchain’s burn tracker.

ETH burned per block.
Source: Etherchain.

How do you burn a cryptocurrency?

While burning is a very dramatic term, it just means removing the coin from circulation.

Typically, this is very simple in technical terms.

If the changes proposed take place, Ethereum would look like the following:

  • Users get better fee estimations and UX,
  • Miners/validators still get paid via the ‘tip’ and protocol issuance,
  • Apps that use Ethereum pay their dues in burnt ETH,
  • ETHs fundamental value increases protocol security increases apps inherit that security.

Official Implementation Discussions

To date there have been 3 Implementers’ Calls, in which the EIP-1559 proposal has been the focus. Each of these calls were live-streamed, however, the only call video recording available is for the 3rd call.

Implementers’ Call #1

The first Implementers’ Call took place on Tuesday, 30th April.

Eip1559 already million eth0

The new proposed solution is to start with a BASEFEE amount which is adjusted up and down by the protocol, based on how congested the network is.

To accommodate this system, the network capacity would be increased to 16 million gas, so that 50% utilisation matches up with our current 8 million gas limit. Then, when the network is at 50% capacity, the BASEFEE increments up slightly, and when capacity is at <50%, it decreases slightly. Because these increments are constrained, the maximum difference in BASEFEE from block to block is predictable.

This then allows wallets to auto-set the gas fees for users in a highly reliable fashion.
It is expected that most users will not have to manually adjust gas fees, even in periods of high network activity.

Eip1559 already million ethel

ETH’s economic value is enshrined at the protocol level.

EIP-1559 is one of the most highly anticipated upgrades for the Ethereum network and has been debated & argued about for a few months. Essentially, the proposal to change the Ethereum fee market is based around these 2 key changes:

  • The current gas limit of 10 million is replaced by two values: a “long-term average target” (10 million), and a “hard per-block cap” (20 million)
  • There is a BASEFEE (which is burned) which transactions are required to pay, which gets adjusted on a block-by-block basis with the goal of targeting a value so that average block gas usage remains around 10 million.

Currently, miners select transactions ranked by the highest fees which results in many users grossly overpaying.

Eip1559 already million etham

In a Twitter (NYSE:TWTR) post published Wednesday, blockchain research firm CryptoRank revealed that over 1 million Ether (ETH) (worth $4.24 billion) had been burned since the introduction of the EIP-1559 protocol in August as part of the London hard fork. The EIP-1559 protocol reformed the Ethereum fee market, modifying the limit for gas fees and introducing a burn feature that takes a portion of transaction fees on the blockchain out of circulation, to be canceled permanently.

Notable decentralized applications responsible for token burn contributions include popular nonfungible tokens, or NFTs, platform OpenSea.io and play-to-earn NFTs game Axie Infinity. Next, transaction volume from decentralized exchanges such as Uniswap, 1inch, and Sushiswap made up a large portion of ETH burns.

Key Takeaways

  • Ethereum has hit 2 million ETH burned.
  • The blockchain’s next protocol update is “the merge” from Proof-of-Work to Proof-of-Stake.
  • With the effects of EIP-1559 and reduced emissions from switching to Proof-of-Stake, ETH could soon become a deflationary asset.

Ethereum’s next major update is “the merge” to Proof-of-Stake.

EIP-1559 Burns 2M ETH

Ethereum keeps burning ETH.

According to data from ultrasound.money, the number one smart contract network hit 2 million ETH burned today. Since Ethereum shipped its London hardfork in August 2021, the total ETH supply has faced deflationary pressure via a fee burning proposal known as EIP-1559.

The call’s agenda included:

  • Status updates from implementers
  • Various 1559-related concerns (see this comment)
  • EIP-2593 overview

The call details / official agenda can be found here, on Github.. The official transcript of the call can be found here.

Implementers’ Call #2

The second call took place on Thursday, 28th May. The second call’s agenda included:

  • Status updates from implementers
  • Removing block size and transaction size riders from EIP 1559
  • 1559 vs.

    Escalator Fees mock ups

  • Consortium network impacts (see this)

The call details / official agenda can be found here, on Github.

The official transcript of the call can be found here.

Implementers’ Call #3

The latest call regarding the implementation of EIP-1559 was held on Wednesday, 24th June and was the 3rd such Implementers’ Call to take place. The agenda of this call included:

  • Status updates from implementers
  • EIP-1559 & Escalator Fees combination/unbundling
    • @MicahZoltu’s comment
    • @barnabemonnot’s proposal
    • Derbit’s analysis of Escalator
  • Testing/Analysis
    • Testnets
    • Formal analysis/proof
    • Simulations
  • EIP-2718: Typed Transaction Envelope
  • Community funding
  • Anything else (please leave a comment)

The details & official agenda for the call are here.

Besides introducing a key protocol change to pay ETH stakers rather than miners, Ethereum is also expected to become 99.95% more energy efficient, something that should be welcomed by the crypto community and mainstream alike.

Crucially, once the merge takes place, it will drastically reduce ETH emissions. The ETH supply currently inflates by about 4.5% annually to pay miners, but with Proof-of-Stake, the annual emission is expected to be closer to 1%. As EIP-1559 routinely burns 6 ETH per minute, it’s estimated that the rate of ETH burned could surpass the amount issued in block rewards to validators.

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