ETHER REDUCED SUPPLY COMPETES WITH BITCOIN HALVING | LOWER GAS FEE EIP 1559 AUGUST 4th LONDON FORK

ETHEREUM PREPARES FOR ITS BULLRUN WITH LOWER GAS FEES EIP 1559 WITH ITS AUGUST 4th LONDON FORK.

The EIP-1559 changes the method by which transactions are processed on the blockchain by enabling clear pricing on a base transaction fee paid to miners in Ether to validate the transfers. A small amount of the tokens will be burnt and taken out of the circulating supply permanently.

Users may also choose to include an optional tip, a “priority fee,” along with their base fee to incentivize miners for a quicker process if desired.

With a more predictable base fee, EIP-1559 may introduce a reduction in gas prices if the current method assumes that users will overpay fees less in the future with the introduction of the new proposal.

The base fee will increase or decrease by up to 12.5%, depending on how much demand surpasses the ideal gas limit per block. Taking a look at how much the base fee is, Ethereum users will then have the knowledge of how congested the network is.

Miners’ income will be impacted by the burning of the base fee. However, they can still earn from the tips and block rewards.

Similar to the Bitcoin halving event that has boosted BTC price, EIP-1559 would introduce a reduced supply of Ether.

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ETHEREUM PREPARES FOR ITS BULLRUN WITH LOWER GAS FEES EIP 1559 WITH ITS AUGUST 4th LONDON FORK

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ETHEREUM PREPARES FOR ITS BULLRUN WITH LOWER GAS FEES EIP 1559 WITH ITS AUGUST 4th LONDON FORK

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