Ethereum improvement proposal (EIP 1559) explained and thoughts
EIP 1559 and how it affects EVERYONE, miners and consumers. EIP 1559 has been on the table for some time now and the discussion about it has happened over the last 2 or so weeks. In the end the developers decided to pass it despite a lot of push back from the community as there should be push back. the Etherum improvement proposal or EIP 1559 is packaged with the London hard fork for this up coming july, even with the discontent of the industry they pushed this proposal through according to all the ore developers call friday we are expecting 5 more EIPS to join 1559 in London. EIP flips a typical blockchain transaction in order to fix numerous issues with the user experience, traditionally a user sends gas fees to miners for a transaction to be included in the block. this gas fee will now be sent to the network it self as what they are calling a "burn" base fees with only an option tip paid to miners, AN OPTIONAL TIP PAID TO MINERS. let that sink in, the burn fee is algorithmically set as well ostensibly making it easier for users to pay a fair fee. I can go ahead and tell you no one is going to give an optional tip, you dont tip in Europe they consider that very disrespectful tipping is only a thing in America and people arent going to tip for transaction fees. so if youre a miner this directly affects you it affects all of us miners and we are the ones that secure the chain and get the coins to be transfer back and forth. But the proposal itself has generated some of the largest support to date from Etherum application creators and users alike, given the current difficulty of selecting a correct transaction fee, miners and the pools on the backside of the hand have been gathering in opposition against the proposal as it progressed toward mainnet. there should be push back for this. Etherum has been particularly lucrative lately and total mining revenue surpassed 1.3 billion in Febuary with some 50% coming from fees alone, according to coin metrics an increase in both the price and transaction fee has introduced a wave of new hash power for the network which has doubled from last year. A minority mining pool flecpool has launched a marketing campaign against the EIP, Several other minority pools have joined followed by majority pools ethermine and sparkpool, over 60% of ETH networks hash power is now against the proposal, F2Pool is the largest pool in favor for the EOP with only 10% of the total hash Power. On call the Etherum Developers Decided to pair EIP 1559 with a delay to the difficulty bomb, also called the "Ice Age" the Bomb incrementally increases the difficulty to mine etherums network, Geth Team Lead Peter Szilagyi said that paring EIP 1559 with the delay helped ensure no one would fork Etherum at that time without having to undergo some techinical hurdles. Mining pools have only a few options here to stop it, most of these would be considered actively hostile agaisnt the network the largest danger would be a 51% attack agaisnt Ethereum which would censor transactions using the EIPs framework, it remains however unlikely given various financial incentives not to attack the network. Doing this would decrease the value of ether in the short term but perhaps not, as etherum classic has shown. moreoever a new revenue replacement is quickly becoming available for mining networks called the MEV miner extracted value, miners can take advantage of their place as arbiters in how blocks are packaged to fron-run profitable trades. MEV is currently popular among decentralized finance (DEFI) traders who bid up gas prices to secure their place in the block, many etherum minng pools are currently implementing MEV software to gather this untapped source of revenue. Please tell me your thoughts on this matter, in the comments below what do you think will happen, with this dividing the community do you think it will cause ETH to crash fully or will this upset miners and pools so much they attack the network itself.
https://www.coindesk.com/ethereum-imp...
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