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Home industry cryptocurrency ethereum’s ‘EIP 1559’ fee structure overhaul scheduled for July

Ethereum’s ‘EIP 1559’ fee structure overhaul scheduled for July


Cryptocurrency

Ethereum’s ‘EIP 1559’ fee structure overhaul scheduled for July

Ethereum’s mainproblem has been its high gas fees which have limited small traders from getting into its DeFi ecosystem. The Binance ecosystem, Cardano, and Polkadot have been becoming favorite as they are gainingsignificant market share due to their low transaction fees. During the past few weeks, the Etherum’s value fluctuated a lot as people are losing interest in Ethereum.

However, to lure the customers back, it is planning to implement the ‘EIP 1559’ fee structure, which was long-awaited. This will significantly reduce the high Gas fees and further strengthen its market value. Ethereum, which is the second-largest cryptocurrency in the world, as per market cap, leads the Defi ecosystem.

Ethereum Improvement Proposal (EIP) 1559 will be arriving with the London hard fork, scheduled for July this year. Also,five other EIPs are likely to join EIP 1559 in London.A large majority of Ethereum miners are against the proposal. But that hasn’t stopped developers from scheduling the upgrade for July.

Traditionally, a user sends a gas fee to a miner for a transaction to be included in a block. That gas fee will now be sent to the network itself as a sort of “burn” called “basefee,” with only an optional tip paid to miners. The burnt fee will be favorable for users to pay a fair fee.The proposal has been welcomed by the Ethereum application creators and users. On the other hand, miners and mining poolsare against the proposal as it is progressing towards mainnet.


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