I'm sharing good news with you today! Ethereum Improvement Proposal 1559 (EIP 1559), co-authored by Ethereum cofounder Vitalik Buterin, will be live starting from July 2021!
Two major effects of this Improvement Proposal will be gas price reduction and the introduction of a burning mechanism.
Ethereum Improvement Proposal (EIP) 1559 introduces a mechanism to adjust the current auction process that determines transaction prices. This update will lower fees so that users will pay lower gas fees. EIP1559 will transition Ethereum’s fee structure away from a bidding system that allows miners to prioritize the highest bids. The new fee structure will dynamically and programmatically adjust fees so users only pay the lowest bid for each block.
But EIP-1559 is not just about a mechanism to reduce eth gas fees, as it will also introduce an Ether burning mechanism that will be able to reduce circulating suppy, making Ethereum more scarce.
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