Why does F2Pool support EIP-1559?
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Published an important speech on "Why Miners Embrace EIP-1559". In that speech, Chun announced that F2Pool will officially support EIP-1559. In this article, F2Pool will detail why it supports the EIP-1559 proposal that can change the Ethereum ecosystem.
Current state of Ethereum
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Source: bitinfocharts
The value of Ethereum block transaction information is increasing, and at the same time, the demand for block packaging is also increasing. It can also be seen from the soaring gas costs. However, we don't see gas fees dropping below 10 gwei yet.
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Ethereum gas cost, source: livdir
Reducing gas costs to a controllable level is not the core issue discussed in this article. Because Ethereum is currently working hard to launch Ethereum 2.0 as a long-term solution to the scalability problem. Currently, there are ready-to-use or upcoming Layer 2 networks, which will ease scalability issues for Ethereum applications until Ethereum 2.0 is launched. This article will explore how we can provide a better Ethereum experience for users and builders. The stakes have never been higher for getting transactions included.Gas costs on Ethereum are expected to rise over time, but this is art rather than science. During times of high market volatility, new trading opportunities, interesting NFT or token sales, and bitcoin and ethereum price fluctuations, gas costs become unpredictable. In order to ensure that the transaction is successfully included in the block, users will suffer from wild fluctuations and unpredictable gas fees, as well as longer than expected queuing times. Sometimes the worst case occurs, the gas fee is exhausted, the transaction packaging fails, and the Ethereum is lost in vain.、Solution: EIP-1559、There are already a large number of articles (、Proposal EIP-1559Will EIP 1559 Bring Ethereum Fork Candy? Why miners finally chose to support it》
The Final Piece of the Puzzle in Ethereum’s Monetary Policy
Vitalik Review
) tells about EIP-1559. In short, the core of EIP-1559 is to change the way gas fees are paid to miners. Currently, miners package transactions mainly by selecting transactions with higher bids (that is, higher gas fees) in the Mempool (transaction memory pool) for packaging.
In the EIP-1559 proposal, the gas fee will be divided into two parts: base fee and tip. The base fee is the minimum price a user must pay in order to have their transaction included in a block. If the EIP-1559 proposal is passed, the base fee will be destroyed. Blocks containing gas fees that exceed the 12.5M limit will increase the limit, and the gas fee will eventually be capped at 25M. Tips can be considered as an additional reward for miners. Once the gas fee reaches the final upper limit of 25M, miners can sort and package according to the level of tips, similar to the current first price package.Although experts say that EIP-1559 has many advantages, we would like to emphasize that EIP-1559 has one advantage: improved user experience.For programs and users, EIP-1559 makes the gas cost predictable, and the gas cost can be accurately estimated by observing the base fee of the block of the packaged transaction, instead of being packaged at a price higher than the current average gas cost.
EIP-1559 is mainly led by Tim Beiko, who is a staunch supporter of EIP-1559, and he is also listening to different opinions from the community. According to his judgment, from a technical point of view (
EIP-1559 Github by Tim Beiko
), there are still some problems to be solved before the launch of EIP-1559. Ethereum EIP-1559 may be launched as early as July's "London" hard fork.
These are known facts about EIP-1559, and next we'll explore why we think the proposal should be supported.
The controversial EIP-1559
The largest group currently opposing EIP-1559 is the Ethereum miners. There is some reason for miners to oppose EIP-1559, because burning the base fee will result in lower revenue for them. Of course, there is no complete economic analysis of how miners will earn after the launch of EIP-1559. Setting up a mining business is challenging, and the uncertainty of gas fees also brings a new challenge to the future planning of the business.
As a result, many mining pools have spoken out against EIP-1559, most notably our peers Firepool and Ethermine.
The current debate over the proposal shows a coordination problem for the Ethereum community. It would be nice to be able to have discussions before EIP-1559 is officially launched. In this matter, neither the opponents nor the supporters are wrong.
The Ethereum ecosystem needs both the advocacy of the core team working to improve Ethereum and the difficulties, protests and suggestions we miners and pools face in proposals.
Then we make a decision based on what we have and the facts.
Why we support EIP-1559
Ethereum is an ecosystem with many stakeholders, each contributing in their own way to the system and making the path it is today. The Ethereum core contributors and development team paved the way for the excellent public chain Ethereum after 2014-2015. Miners are full of confidence in this early version, and it still guarantees its safe operation when there is no ecological construction. Miners played a key role in securing the early days of Ethereum and subsequently attracting developers to its ecosystem.
Now, there are tens of thousands of applications and a large number of builders on the Ethereum ecosystem. Now, the status has shifted, and builders and users are driving the value of Ether and cementing its leading position in the decentralized application world.
Miners have benefited from the growing use of Ethereum. Although the block reward has dropped from 30,000 ETH per day in 2016 to 13,000 ETH per day today. However, in fiat terms, miners' block reward income has increased from $300,000 per day (calculated at 10 USD/ETH) to today's $23.4 million per day (calculated at 1800 USD/ETH). This still does not count the MEV (miner extractable value) opportunities due to the popularity of DeFi.
Now, users and ecological applications on Ethereum require EIP-1559 to improve the network.
Historically, we've been taught a lesson, and paid dearly, for not uniting our core users and contributors. Following the hard fork of The DAO, key developers and core contributors built on the current Ethereum and helped it thrive to this day. While Ethereum Classic (ETC) is still a growing ecosystem, it has lagged far behind Ethereum in terms of usage and adoption.
