According to a blockchain data company Dune Analytic, the implementation of the EIP-1559 proposal would have resulted in almost 1 million ETH burned
The controversial Ethereum Improvement Proposal would have burned 970,000 Ether (translating to more than $ 360 million) last year, had it been approved. The proposal aimed to reduce transaction fees on the network, adopting the fixed rate approach together with a flaring mechanism.
This controversial approach has sparked debate and raised concerns in the Ethereum community. Most ETH users expressed their frustration due to delays in implementing the proposal.
A cryptocurrency user by the Laur Science identifier on Twitter suggests that the proposal should be incorporated when the next fork is made, saying: “Hopefully we will not continue to discuss this for two more years, while miners receive a lot of $ ETH and throw it away for $ USD, keeping the $ ETH price under control ”.
Interestingly, the concept of burning rates was already an option, even before the first block was mined at ETH. EIP-1559 is, however, the first proposal to recommend incorporating the idea into the network. The EIP-1559 proposal suggests that all transactions on the ETH network have a standard fixed base rate that must then be burned. The reward for miners will be obtained through tips in addition to the fee for network users.
The proposal is allowed to vary the base rate so that block sizes are kept at around 10 million gas, aimed at introducing a system of predictable rates and greater security. As expected, due to the impact on revenue that they will earn, the mining community showed resistance and reaction against the proposal. ETH mining companies have been getting satisfactory returns in recent months.
Messari recently reported that Ethereum has taken on more fees than Bitcoin in the past two months – a record streak. At the same time, Tim Beiko, developer of ConsenSys, posted the results of a survey on the fee proposal. Eight of the nine mining companies said they would reject EIP-1559’s new proposals if it were presented as a hard fork.