When did EIP-1559 Happen? On 5th August 2021, the Ethereum London Hard fork, dubbed EIP-1559, went into effect. Let's take a closer look.
What is EIP-1559?
EIP-1559 is an upgrade that made Ethereum transactions more efficient by using a system of block-based base fees, and sender-specified max fees, rather than bidding on gas prices to more evenly incentivize miners in periods of high or low network congestion. It was packaged with the London hard fork. Four other EIPs will join EIP 1559 in London.
When did EIP-1559 Happen?
Ethereum Improvement Proposal (EIP) 1559 is an upgrade that happened on August 5, 2021, to change how Ethereum calculates and processes network transaction fees (called "gas fees").
How Does It Work?
Under the original Ethereum gas fee system, users bid a random amount of money to pay for each transaction. When the network becomes busy, this system causes gas fees to become high and unpredictable.
Under the new system, gas fees will have two components – a base fee and a tip. The base fee will be a standard charge that all users will pay. It will be calculated by the network based on network traffic. The tip will be an optional extra payment that users can pay to speed up their transactions.
EIP-1559 also requires that the network burn all Ether tokens used to pay base fees. This procedure will reduce the total supply of Ether tokens, making Ether more scarce and therefore more valuable.
When did EIP-1559 Happen? What is EIP-1559? - hopefully, this article can help you to get some knowledge.
