- Ethereum’s founder highlights why EIP-1559 is crucial to the network’s supply
- The network’s current transaction model is inadequate
- The Ethereum community is excited about the upgrade
Ethereum News Today – the Ethereum network has had a lot of controversy in recent weeks. The issue of rising transaction fees has hit the network in recent weeks. Now, another area in focus on ETH is the controversy over Ethereum’s total supply. Recall that Ethereum did not integrate a maximum supply into its protocol because its issuance rate isn’t based on an algorithm or curve. Instead, it is based on developer decisions.
Regarding the recent issues on the network, Vitalik Buterin, the founder of the project, moved to calm fears that the ETH protocol will be printed ad nauseam back on August 7. At the time he talked about a new technical change that could make the token deflationary. Those who have been following Ethereum’s activity in the last few months can recall that the phrase “EIP-1559” has come up countless times.
Ethereum’s Current Transaction Model is Inadequate
EIP-1559 (Ethereum Improvement Proposal 1559) suggests that the transaction model that is currently in use on the Blockchain is inadequate and needlessly costly. Ethereum’s current system makes transactors bid in double-sided markets if they want their transactions to be included in blocks. To tackle this so-called inefficiency, Ethereum’s Buterin, who is the co-author of the proposal (and his other developers) has suggested the implementation of a flat rate or “market rate” for Ether transactions.
The proposal also insists on the implementation of a model to burn some amount of ETH for every sent transaction. In a tweet, Buterin invoked this technical improvement as the answer to the recent criticism that the Ethereum network has had to endure due to its lack of a strict supply cap. The Ether founder noted that after ETH2’s staking is activated and the EIP-1559 upgrade is implemented, the protocol may become deflationary.
The Ethereum Community Is Excited About the Upgrade
The latest upgrade will ensure that ETH obtains a higher monetary premium. According to crypto research firm Delphi Digital, in its The State of Ethereum 2020:
“Putting things together, the EIP 1559 change and staking form a symbiotic relationship which increases usage drive value and access to cash flow to a broader number of participants for securing the network. The goal is to create a more effective long-term value proposition.”
The community has been excited considering the implications of the latest Ethereum upgrade. The community is trying to push the upgrade live. In just one day, a donation portal for EIP-1559 development raised more than $25,000. The funds would cover all expenses related to the development and testing of the coming upgrade. Apart from the above figure, thousands of USD have been donated to ensure that the upgrade comes sooner.