Evan Van Ness points to how EIP1559 is happening in a matter of weeks. He lists the non-pecuniary 1559 benefits for Ethereum.
“BENEFIT NUMBER 1: UX. EIP1559 was written by Vitalik 3 years ago and then eric.eth picked it up and pushed it hard because Eric was frustrated with how he couldn’t get friends to use Eth apps. The gas fee and gas limit are too complicated for new users. EIP1559 mostly abstracts gas fees away from the user. Much of the complexity will be pushed to wallets away from users. All users have to do is pay the base fee. This should also help app devs not deal with so many frustrated users when their transactions get stuck some wallets will deal with this better than others. Just like many wallets today suck and leave users blaming Ethereum when it’s the wallet’s fault, there will still be some of that even with 1559. Hopefully on balance this should be far reduced
BENEFIT NUMBER 2: Predictable transactions fees and new BASEFEE op code will help rollups. This is a corollary of #1, but is so important that it deserves to be #2. Predictable transaction fees help rollups posting call data to quote EIP3198: “Having the BASEFEE op code allows you to lengthen the challenge period automatically if you see that base fee is high” A benefit for all of l2 that uses crypto economics (optimistic rollups, state channels, Plasma) Ethereum is all-in on rollups, this is big.
BENEFIT NUMBER 3: Security. This seems to be the one that everyone overlooks, but 1559 is an important *security* upgrade. While the Berlin upgrade was a very important step to thwart DOS attacks. EIP 1559 is an important long-term step to preventing DOS attacks. Want to spam the chain while shorting $ETH in hope of profiting? Well under 1559 that’s so even when opcode pricing gets out of wack again, 1559 will make it so much harder to spam attack the chain and profit. This is an under reported and HUGE benefit.
BENEFIT NUMBER 4: 1559 breaks economic abstraction. This will incentivize layer2 adoption Right now mining pools include their payouts to miners at ~zero gas price. With 1559 they have to burn half the base fee, so they won’t do this. Instead mining pools (and soon, staking pools) will be incentivized to use layer2 (hopefully) or a side chain. Either way, 1559 frees up block space AND helps spur the adoption of layer2. No more out-of-band miner bribes are possible without burning half the base fee.
BENEFIT NUMBER 5: Less incentive for short-term re-orgs. This takes some explanation, but front running transactions by miners can create some adverse incentives for chain stability. 1559 alleviates this by changing ratio between block rewards and transactions fees. So yes, it’s true that EIP1559 will very likely lead to negative issuance which will likely put substantial upward pressure on the fiat price of ETH But that is not the primary benefit of 1559 (though with PoS, it’s very important that ETH be valuable!)
In fact, burning ETH was simply a necessary way to make 1559 work. And 1559 is a clearly better tx inclusion mechanism than our current first price auction. Many pro-1559 people were against it at first (like me!) But then we learned about it and switched, because 1559 is a VERY IMPORTANT and NECESSARY upgrade to Ethereum. So don’t believe the strawman arguments about “but you said 1559 will make transaction fees go down” or nonsense like “1559 is just about ultrasound money” 1559 may* make transaction fees go down (through 2nd order effects) we’ll see, but the main point of 1559 is better UX by making transaction fees predictable. And EIP1559 is a necessary security upgrade for Ethereum’s long-term.“
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