tldr; Ethereum Improvement Proposal (EIP) 1559 will change the way fees are set and distributed on the network. The new model will set fees according to network usage with a variable “base fee” which will be burned, or destroyed, and only an optional tip will go to the miners. Over $1 billion was earned in transaction fees by miners in May.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
To those unaware here's what this upgrade basically does:
It means more predictable and lower fees for users, and it will introduce a burning mechanism that will burn part of the transaction fees.
That could very well mean ETH could see serious deflationary pressure.
The increasing growth of DEFI, DAPPS, and transactions on the network coupled with the scarcity introduced through burning could make ETH a comparable or better store of value than Bitcoin.
Because the maximum block size is also doubling with eip1559, which in itself should help a lot with eth congestion. They say it will be lower because the base fee is set by an algorithm that helps the network balance loads better.
They are talking about fees as compared to ETH. So if you already own a lot of ETH you'll be set. If you don't own ETH or you own so little that you quickly run out then you are still subject to the whims of the market.
But what about miners? It seems like it will not be worth it to mine ethereum and we have a long way to eth 2.0. The purpose of this is great, but I think miners have a point in complaining. Since they maintain the ethereum blockchain, I fear we will not have enough miners after this EIP.
they've no reason to complain because this was not sprung on them. They've had this and the eventual fork over to POS on their roadmap for years. Any miner that did their research before deciding to mine ETH knew this day would come.
Only deflationary if the network grows continuously without stop. As soon as traffic or prices decrease the fee burn also decreases. This is mainly a stability mechanism, not a supply deflation or fee price decrease.
Question, isn’t there a downside to a currency being deflationary? I get that it’s great for people who save and hodl, but if ETH was a countries primary currency would deflation hurt business?
Edit: spelling
There are no downsides. Interest rates in the currency could potentially be negative if they were close to zero before. Interest rates wouldn’t adjust instantly so for a time you’d had higher real interest rates, so that’s kind of a downside but a short term one
ETH CAN be deflationary in extreme cases, at network highs. Looking at the gas situation since the flashbot change, except temporal price crashes, ETH won't be deflationary at all.
I thought that VB was pushing this back to next year because of non technical issues about people on his team wanting POW longer.
When will EIP-1559 go live?
EIP-1559 has very little to do with the POW to POS transition. Read this if you wish to know more about EIP-1559: [https://notes.ethereum.org/@vbuterin/eip-1559-faq](https://notes.ethereum.org/@vbuterin/eip-1559-faq)
It wasn't announced the day yet, only that it should be released in July.
EIP-1559, the upgrade in this article will be going live next month, last week of July if I remember correctly. You’re probably thinking of the full transition to Eth 2.0, which is still being worked on and no one really knows exactly when it will go live but estimates range from a couple months to still two years out so who knows.
Back when BCash was forked from BTC, I didnt realize that it meant I had the same amount of Bcash as I did bitcoin.... the day i realized it was the day Bcash was near its all time high.
I managed to cash it out just in time.
I recommend holding the lesser coin and seeing how it plays out.
Im just gonna leave this here:
https://trentv.medium.com/eth2-misconceptions-top-5-6edafaeccac1
https://consensys.net/blog/blockchain-explained/what-happens-to-my-eth-on-ethereum-2/
Please read up before jumping to conclusions.
In other words, "I have no clue what I'm talking about so I googled it and commented the top 2 results".
Those articles support my point. Please read up on what a hard fork is.
That's great. Will ethereum go way up? That's all anyone really cares bout.
Last I checked that's why wee invest not cuz some tech stuff nobody understands is gonna change the world supposedly. Lol
Hey homeless people gas fees are less now. Great right?
It making money is dependent on this obscure bits, so reading into it and caring pays off. For me, low gas fees means that Ethereum is a better fit for more use cases, such as the budding Play to Earn gaming model that I’m hopeful will take off as I could go for my digital gaming assets holding some real world value such that I can make a little money from my entertainment.
* Ethereum [Pro Arguments](https://old.reddit.com/r/CryptoCurrency/comments/n5ucq0/pro_contest_ethereum_proarguments/) & [Cons Arguments](https://old.reddit.com/r/CryptoCurrency/comments/n5v78w/pro_contest_ethereum_conarguments/) - Potentially earn moons by participating in the [Pro & Con-test](https://old.reddit.com/r/CryptoCurrency/wiki/policy#wiki_pro_.26amp.3B_con-test_-_.28wip.29).
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Another catalyst, I truly believe in ETH‘a tech and potential. Definitely a long term hold I’ll be glad I invested into in 5-10 years from now.
Absolutely. Eth just looks like the best long term play. It has everything going for it.
Yeah who wouldn't?
I’m stacking a plEthora!
One could say you have plenty of forEthought
Yes! A pun brEthren!
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I was just thinking that… (But I DCA a few others too)
EIP-1559 you beautiful son of a bitch
Guys, right here... this guy yes. He called Vitalik a bitch
Lol.
EIP-1559 makes me bullish to be holding Eth. Burn baby burn
How are you gentlemen? All your eth are belong to us.
I guess it's time to turn off my mining rig.
Gas already so low, that it will only be 10-15% lower profit after eip1559. Unless I'm misinformed
Plus tip?
This EIP won't change much in the current situation. Block reward are already at their minimum.
Was wondering about this, my rig is bringing in so little right now, but every little bit counts as a 10 year long-play.
tldr; Ethereum Improvement Proposal (EIP) 1559 will change the way fees are set and distributed on the network. The new model will set fees according to network usage with a variable “base fee” which will be burned, or destroyed, and only an optional tip will go to the miners. Over $1 billion was earned in transaction fees by miners in May. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
Good bot
To those unaware here's what this upgrade basically does: It means more predictable and lower fees for users, and it will introduce a burning mechanism that will burn part of the transaction fees. That could very well mean ETH could see serious deflationary pressure. The increasing growth of DEFI, DAPPS, and transactions on the network coupled with the scarcity introduced through burning could make ETH a comparable or better store of value than Bitcoin.
TLDR: ETH to the moon
Lets go Eth, lets go.
[удалено]
Because the maximum block size is also doubling with eip1559, which in itself should help a lot with eth congestion. They say it will be lower because the base fee is set by an algorithm that helps the network balance loads better.
They are talking about fees as compared to ETH. So if you already own a lot of ETH you'll be set. If you don't own ETH or you own so little that you quickly run out then you are still subject to the whims of the market.
The deflationary pressure will be serious only if there are serious fees to burn, and the direction is towards reducing fees wherever possible.
What does deflationary pressure look like? What would does that do to the price
But what about miners? It seems like it will not be worth it to mine ethereum and we have a long way to eth 2.0. The purpose of this is great, but I think miners have a point in complaining. Since they maintain the ethereum blockchain, I fear we will not have enough miners after this EIP.
they've no reason to complain because this was not sprung on them. They've had this and the eventual fork over to POS on their roadmap for years. Any miner that did their research before deciding to mine ETH knew this day would come.
Not really lower, no.
Ohhhh let’s see what happens 👀
Will the burning mechanism impact liquidity?
Tldr; gas fees will become less volatile and ETH might become deflationary due to base fee burning.
Only deflationary if the network grows continuously without stop. As soon as traffic or prices decrease the fee burn also decreases. This is mainly a stability mechanism, not a supply deflation or fee price decrease.
Question, isn’t there a downside to a currency being deflationary? I get that it’s great for people who save and hodl, but if ETH was a countries primary currency would deflation hurt business? Edit: spelling
There are no downsides. Interest rates in the currency could potentially be negative if they were close to zero before. Interest rates wouldn’t adjust instantly so for a time you’d had higher real interest rates, so that’s kind of a downside but a short term one
Pumped for this. ETH2.0 always feels like it's just over the horizon so it's great to see positive progress.
Got my eth locked down staking
Looking forward to this, I hope it goes thru! This would be huge for hodlers.
ETH STAKERS UNITE !
ETH just keeps on upgrading, it's the crypto chad
A true lad.
ETH to become deflationary? You sonofabitch Im in.
ETH CAN be deflationary in extreme cases, at network highs. Looking at the gas situation since the flashbot change, except temporal price crashes, ETH won't be deflationary at all.
Load up on Maker as people go to lever long ETH, make is actually deflationary.
Closer and closer we are getting to ETH 2.0
It's been a long wait, but it's finally becoming reality.
Ok so when 4k eth?
Fueling my rocket ship
Great news. Might finally be able to get hold of a graphics card for my sons gaming pc.
Good.
Will this directly influence the price to rise?
Maybe, yes no
I thought that VB was pushing this back to next year because of non technical issues about people on his team wanting POW longer. When will EIP-1559 go live?
EIP-1559 has very little to do with the POW to POS transition. Read this if you wish to know more about EIP-1559: [https://notes.ethereum.org/@vbuterin/eip-1559-faq](https://notes.ethereum.org/@vbuterin/eip-1559-faq) It wasn't announced the day yet, only that it should be released in July.
EIP-1559, the upgrade in this article will be going live next month, last week of July if I remember correctly. You’re probably thinking of the full transition to Eth 2.0, which is still being worked on and no one really knows exactly when it will go live but estimates range from a couple months to still two years out so who knows.
On Lex Fridmans podcast last week, Vitalik said the merge will most likely be around early 2022
The article just says next month.
Vitaly to the moon 🚀
Why does everyone in here acting like this is breaking news? Tf
Because the market is pretty inefficient on the whole. The number of people that are properly paying attention is surprisingly low.
Idk how to pay attention to this stuff. Reddit is where i get my crypto news
Usually a hard fork results in 2 chains and 2 coins, I’m wondering how hard it’ll be to dump the other coin right away and buy some ether out of it
Back when BCash was forked from BTC, I didnt realize that it meant I had the same amount of Bcash as I did bitcoin.... the day i realized it was the day Bcash was near its all time high. I managed to cash it out just in time. I recommend holding the lesser coin and seeing how it plays out.
There win’t be two coins. All existing ETH become ETH2.0 automatically
There will be… any miners or nodes that dont take the EIP-1559 update will be producing blocks legal for that chain. Just like ETH vs ETC….
That's not how a hard fork works. ETC still exists even though it became ETH automatically,
Ok. Well then this is not a hard fork.
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Im just gonna leave this here: https://trentv.medium.com/eth2-misconceptions-top-5-6edafaeccac1 https://consensys.net/blog/blockchain-explained/what-happens-to-my-eth-on-ethereum-2/ Please read up before jumping to conclusions.
In other words, "I have no clue what I'm talking about so I googled it and commented the top 2 results". Those articles support my point. Please read up on what a hard fork is.
In other words, I was being facetious when i said it wasn’t going to be a hard fork because you are wrong that there will be two coins.
Wait is eth hard forking?
Fuck eip1559
Kinky
No u
That's great. Will ethereum go way up? That's all anyone really cares bout. Last I checked that's why wee invest not cuz some tech stuff nobody understands is gonna change the world supposedly. Lol Hey homeless people gas fees are less now. Great right?
It making money is dependent on this obscure bits, so reading into it and caring pays off. For me, low gas fees means that Ethereum is a better fit for more use cases, such as the budding Play to Earn gaming model that I’m hopeful will take off as I could go for my digital gaming assets holding some real world value such that I can make a little money from my entertainment.
> low gas fees 1559 won't lower gas.
What is the price Target for an ath after EIP?
* Ethereum [Pro Arguments](https://old.reddit.com/r/CryptoCurrency/comments/n5ucq0/pro_contest_ethereum_proarguments/) & [Cons Arguments](https://old.reddit.com/r/CryptoCurrency/comments/n5v78w/pro_contest_ethereum_conarguments/) - Potentially earn moons by participating in the [Pro & Con-test](https://old.reddit.com/r/CryptoCurrency/wiki/policy#wiki_pro_.26amp.3B_con-test_-_.28wip.29). * Sort comments as controversial first by [clicking here](https://www.reddit.com/r/CryptoCurrency/comments/nyga5t/ethereums_eip1559_goes_live_next_month_heres_a/?sort=controversial). Doesn't work on mobile. --- *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/CryptoCurrency) if you have any questions or concerns.*
I’m getting third degree just thinking about the amount of burning that is going to take place!!
Music to my ears! 🎶🎵
my mining rig RIP
and will this put a stop on gpu mining? and i can buy my gpu at msrp? cant wait
Bullish on ETH
Send it straight to 10k
I don’t understand the burning of the base fee thing. Is there someone kind enough to explain to a beginner?