In-depth analysis of the three major expectations implemented by EIP-1559 from the data on the chain

Analyst | Edited by Carol | Produced by Tong | PANews

Analyst | Edited by Carol | Produced by Tong | PANews

The high-profile Ethereum EIP-1559 reform plan has been online for more than ten days. According to the monitoring of Dune Analytics, as of August 19 (around 11:00 am Beijing time), EIP-1559 has destroyed a total of 62981 ETH, equivalent to 1.95 One hundred million U.S. dollars.According to the plans of core developers such as Vitalik Buterin, Eric Conner, and Rick Dudley, the EIP-1559 proposal will solve the mismatch between Ethereum transaction fee fluctuations and transaction social costs, and reduce unnecessary delays in user transactions and long-term solutions. Block rewards provide new ideas for hidden dangers caused by blockchain security. However, other than that,

The market still has three major conjectures about EIP-1559: Can EIP-1559 improve the trend of high transaction fees? Can deflation be achieved? Will it greatly reduce the income of miners?

In order to verify these expectations and conjectures, PAData deeply analyzed the data on the chain after EIP-1559 went online, and found that:1) A total of 54493 ETH has been destroyed within 12 days since EIP-1559 was launched,

The average proportion of the total daily burning amount to the nominal mining income is about 22.84%, that is, the income of miners who support EIP-1559 drops by about 23%.2) EIP-1559 has been online for 12 days and has paid Tip (Max Priority Fee) 1878 ETH in total,The average proportion of the total daily Tips to the actual mining revenue (destroyed) is only about 1.02%,

That is to say, miners who support EIP-1559 receive very little fee income.3) As of August 16 (24:00 standard time)The average number of transactions using the EIP-1559 rule is about 15.72% of the total number of transactions on the day, and the maximum value does not exceed 25%. The application rate of EIP-1559 is still low.

But from a smaller time unit, the application rate of EIP-1559 once exceeded 50% on August 19 (02:00 standard time), the highest in history.4) After EIP-1559 went online, the gas price did not drop, the number of transactions was basically stable, and the average utilization rate of the block capacity dropped from 97.26% to 53.02%, which meansThe current network status will not increase the Base Fee,

This in turn increases transaction fees.5) After the launch of EIP-1559, without fully using this standard, the total daily average mining income has dropped from 21,700 ETH this year to 15,300 ETH, a drop of about 30%, even compared with the July daily average of 1.74 Compared with the income level of 10,000 ETH, the drop has also reached 12%.

It is expected that with the increase in the application rate of EIP-1559, the decline in mining revenue will be more obvious. However, there is no evidence that miners have thus turned to off-agreement markets, such as MEV.6) After EIP-1559 goes online,The average yield of new tokens per block is approximately 2.08 ETH(including uncle block rewards), but the average burning amount of each blockchain is about 0.74 ETH,The average number of blocks that achieve deflation on a daily basis accounts for about 2.47% of the total number of blocks on that day.picture

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EIP-1559 has destroyed more than 50,000 ETH, but the current transaction usage rate is still less than 25%According to the tracking and monitoring of Dune Analytics,As of August 16[1], EIP-1559 has destroyed a total of 54493.46 ETH, with an average daily destruction of 4541.12 ETH.In the case of incomplete application of EIP-1559, the daily mining income of current miners has dropped by about 23% on average.

pictureAnother aspect of the EIP-1559 reform is that users can pay Tip (Max Priority Fee) according to actual transaction needs. According to statistics, as of August 16,The total amount of Tips paid by users is about 1877.73 ETH, and the total amount of Tips paid by users is about 156.48 ETH per day.

The total amount of Tip contained in each block is about 0.024 ETH per day.From the perspective of proportion, the average proportion of the total daily Tips to the total actual mining revenue (total amount not destroyed) is about 1.02%, and the highest single-day proportion is about 1.68%, that is,The actual transaction fee accounted for less than 2%.According to PAData's statistics on last year's data on the Bitcoin and Ethereum chains, the average proportion of Bitcoin's service fee income to the total mining revenue is about 6.69%, and that of Ethereum is about 16.06%. In contrast, without full application of EIP-1559,However, the current network status of Ethereum has remained basically stable, which provides the possibility to realize one of the original intentions of EIP-1559 - to deal with the hidden dangers caused by the lack of block rewards to the security of the blockchain in the long run.

pictureAt present, EIP-1559 has not been applied to every transaction on the chain. According to statistics, as of August 16,The average proportion of transactions using EIP-1559 to the total number of transactions on the day is about 15.72%.

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After the proposal of the EIP-1559 proposal, the market has three major conjectures: Can EIP-1559 improve the trend of high transaction costs? Can deflation be achieved? Will it greatly reduce the income of miners? After the official launch of EIP-1559, the data on the chain has already answered these questions.

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In fact,In fact,The original design intention of EIP-1559 does not include reducing the gas price, but aims to make the gas price predictable, thereby improving transaction efficiency.

The predictability of Gas price mainly refers to the predictability of Base Fee, which is closely related to the utilization rate of block capacity. According to the rules, when the usage rate of the block capacity exceeds 50%, the Base Fee will increase by up to 12.5%; when the usage rate is 50%, the Base Fee will remain unchanged; when the usage rate is less than 50%, the Base Fee will be reduced by up to 12.5% %.According to statistics, this year, before the launch of EIP-1559, the average actual usage rate of each block capacity of Ethereum was about 97.26%.As of August 16, the average actual utilization rate of each block capacity of Ethereum is about 53.02%.The network status remains relatively stable, which makes the handling fee of EIP-1159 relatively stable in the near future.

pictureAlthough NFT transactions are booming recently, there may be a large demand in a short period of time, but overall, this popularity is not enough to change the state of the network.

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Reduced miner income?EIP-1559 destroys all Base Fees paid by users, which really affects the mining income of miners. Under the current situation of incomplete application of EIP-1559, according to statistics, this year, before EIP-1559 went online, the average daily mining income of Ethereum was about 21,700 ETH,Even compared with the average daily mining revenue in the last two months (June 1st to August 4th), EIP-1559 still reduced the average daily mining revenue by more than 7%. It is expected that with the increase in the application rate of EIP-1559, the decline in mining revenue will be more obvious.

pictureHowever, for now,The decline in mining revenue has not forced miners to turn to markets outside the protocol, such as trying to acquire more MEV.According to the monitoring of MEV-Explore, after the launch of EIP-1559, the total amount of MEV generated in a single day has not increased significantly. In fact, since July this year, the highest value of MEV in a single day has never exceeded 450 ETH, which is a sharp drop from the level of thousands in a single day at the beginning of this year. Moreover, from the source of MEV, the currentAccording to PAData's long-term observation, the proportion of miners' acquisition remains relatively stable, always below 12%. Whether it will prompt miners to switch to the market outside the agreement in the future will require a longer period of practice to verify.

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Will Ethereum achieve deflation?

Since EIP-1559 will destroy some of the circulating ETH, this may lead to deflation of ETH. However, according to the current implementation situation, on the whole, deflation has not yet arrived.The average daily burning volume of each block is only 36% of the newly produced tokens, which is far less than the newly produced tokens. On the whole, the entire network is still in a state of increasing issuance every day.

pictureAlthough it will take some time before the overall deflation appears, there are already dailyIndividual blocks achieve partial deflation.According to statistics from Dune Analytics, after EIP-1559 went live, as of August 16, the EthereumThe average ratio of the number of daily deflationary blocks to the total block output is about 2.47%,

At present, EIP-1559 has been online for a short time, and its application rate is also low. As the application rate increases, the impact of this proposal on the Ethereum network will be more significant. But this impact may be dynamic, and other ecosystems related to Ethereum may make changes at any time. The impact of this upgrade may be long-term, and any party involved should keep an eye on it.

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