The first anniversary of the Ethereum London upgrade, what stories does EIP-1559 bring?
Original Author: iambabywhale.eth
In 2021, Ethereum has undergone two rounds of relatively important hard fork upgrades. The first is the Berlin hard fork at block height 12,244,000. The upgrade includes various optimizations to the contract, covering Gas efficiency, updating the code reading method of the Ethereum Virtual Machine (EVM), and other changes to prevent DDOS attacks, etc. .
If the upgrade of the Berlin hard fork is just some minor repairs on the basis of Ethereum at that time, then the upgrade of the London hard fork completed at the block height of 12,965,000 (August 5, 2021, Beijing time) is an improvement on Ethereum’s gas A "reform" of the mechanism.
The London hard fork upgrade includes 5 core improvements, namely EIP-1559 (handling fee market reform), EIP-3198 (BaseFee opcode), EIP-3529 (reduce Gas refund, invalidate Gas Token, and serve EIP -1559), EIP-3541 (reject new contracts starting with 0xEF), and EIP-3554 (difficulty bomb postponed to first week of December 2021).
Among them, the most concerned by the market is EIP-1559. This improvement proposal proposes a mechanism to optimize Ethereum transactions, aiming to make transaction fees on the Ethereum network more predictable and solve the previous "pay-as-you-go" charges. Schema problem. The goal of EIP-1559 is to create a more efficient fee market and simplify the gas fee payment process for clients and application software, thereby eliminating the potential for users to pay unnecessarily high gas fees.
To put it simply, EIP-1559 makes Gas fees "predictable", BaseFee is public, and if you want transactions to be confirmed as soon as possible, you can use tips to allow miners to increase the priority of packaged transactions. Prior to this, the gas fee has been using a non-public bidding model, making the gas fee unpredictable, and some transactions paid more than they actually needed to be packaged as soon as possible. In addition, due to the destruction of BaseFee, the inflation rate of Ethereum has also been reduced compared to before.
It has been a year since EIP-1559 was officially implemented. During this year, the destruction of BaseFee brought by EIP-1559 has produced a lot of interesting data.
Total amount destroyed
According to data from ultrasound.money, as of block height 15276831 (0:00:02 on August 5, 2022, Beijing time), the total amount of Ethereum destroyed has reached 2,571,183.34, worth about 4.14 billion US dollars at current prices.
Within 24 hours after the completion of the London hard fork upgrade, the amount of Ethereum destroyed was about 4,700; within a week after the upgrade was completed, the amount of destruction exceeded 30,000.
After that, the amount of Ethereum destroyed will exceed 50,000 on August 16, 2021; 100,000 on August 26, 2021; 200,000 on September 5, 2021; and around October 11, 2021 500,000 pieces; break through 1 million around November 24, 2021; break through 2 million around March 21, 2022.
During this year, Ethereum issued 4,623,662 new coins, and the burning volume accounted for 55.61% of the total new issuance, which made the inflation rate of Ethereum drop to 2.4% in the past year. According to Nansen data, the transactions supporting EIP-1559 have stabilized at around 80% in the near future, but suddenly dropped to 60% yesterday, the reason for which is unknown.
In addition, according toThe Block dataIt shows that the highest value of Ethereum’s single-day destruction occurred on May 1 this year, and about 71,720 Ethereum were destroyed in a single day, which was nearly 60,000 more than the additional issuance of Ethereum on that day.
Project destruction
According to the ultrasound.money data, the top ten Ethereum contract contracts are as follows (some data may have errors):
Ethereum transfer (237,438.18 pieces)
OpenSea（230,049.80 pieces)
Uniswap V2 Router 2（135,647.61 pieces)
Tether（112,497.21 pieces)
Uniswap V3 Router 2（90,035.51 pieces)
OpenSea trading contract (70,772.36 pieces)
Otherdeed（56,008.67 pieces)
MetaMask transaction routing (51,032.13 pieces)
USDC（48,057.74 pieces)
Uniswap V3 Router（47,663.68 pieces)
In the Ethereum destruction list compiled by ultrasound.money, there are also DeFi protocols including SushiSwap, 1inch, Aave, 0x, and Paraswap; Ethereum expansion networks including Polygon, Arbitrum, Optimism, Gnosis Protocol, and zkSync and exchanges including Gemini, Kraken, KuCoin, Bitstamp, Coinbase, Binance. Also on the list are protocols such as Axie Infinity, Shiba Inu, Genie, Gem, Chainlink, DAI, Tornado Cash, ENS, LooksRare, dYdX, ApeCoin, Hop Protocol and more.
It is worth mentioning that due to the continued popularity of the NFT market in the second half of last year and the first half of this year, the amount of Ethereum burned by the OpenSea contract has long occupied the "top" position. But just recently, as the NFT market continues to cool down, the amount of destruction of Ethereum transfers surpassed OpenSea and ranked first.
In addition, according to ultrasound.money data, the amount of Ethereum destroyed in NFT-related contracts reached 956,027 in the past year, accounting for 37% of the total amount destroyed; the amount of Ethereum destroyed in DeFi-related contracts reached 755,607, accounting for 29% of the total amount destroyed. %; In addition, MEV transactions destroyed 66,609 Ethereum, and Layer 2 related contracts destroyed 25,176 Ethereum.
other data
In this short period of one year, EIP-1559 has brought many interesting data and stories.
After the upgrade, the gas does not drop but rises?
Just after the completion of the London upgrade, which claimed to solve the problem of excessive gas, the gas fee rose instead of falling, sparking community discussions. Ethereum developer trent.eth tweeted that there are five main reasons for this situation:
Some service providers, including exchanges, disabled some functions (such as deposit and withdrawal) during the upgrade, resulting in a concentrated explosion of demand after the upgrade was completed;
Some massive NFT airdrops are underway;
Some miners set the Gas Limit lower than 30 million, resulting in less than 50% of the actual gas usage of each block, which aggravated the congestion on the chain;
Ethereum secondary market price fluctuations;
Users are sending transactions in large numbers to try out the new features brought by EIP-1559.
The result of the upgrade is not satisfactory
At the end of September of the same year, Bitfinex's wallet made a transfer of 100,000 USDT with a gas fee of 7676.62 Ethereum (worth over $20 million at the time). According to the information on the chain, there may be multiple parameter settings errors in this transaction, resulting in an abnormal Gas fee, but this transaction only destroyed about 0.0085 ETH. At that time, the overseas Ethereum community believed that the arrival of EIP-1559 would reduce such outrageous mistakes, but in fact it did not seem to do so.
miner income
according to
according toThe Block dataIt shows that the total income of Ethereum miners basically maintained the level of 2021 until May this year, and there was no significant decline until the price of Ethereum plummeted. This shows that the income of Ethereum miners has not actually declined significantly due to the implementation of EIP-1559. At the same time, it also shows that although EIP-1559 theoretically reduces the possibility of "wasting money", it does not really Reduce on-chain costs.
Gas War
At the end of the month when the London upgrade was completed (August 28), the Adam Bomb Squad NFT released by the clothing brand The Millions kicked off the first "Gas War" since the Ethereum Gas policy was updated. About 1,908 Ethereum were destroyed within one hour of the NFT’s open sale, and Gas once soared to 1,500GWei.
The smoke of the first Gas war has not yet cleared. Three days later, the NFT project Fatales once again set off a Gas war. The number of Ethereum burned within 1 hour was about 1080. Although the burning volume was not as high as the first battle, the Gas once soared to around 2000GWei.
In September of the same year, the third Gas War started. A project called sipherNFT also destroyed more than 1,000 Ethereum within 1 hour, and caused the Gas fee to skyrocket to around 3,000GWei.
After the "Three Shots Surprise", whenever a popular NFT project is launched for sale or casting, it will set off a bloodbath on Ethereum. And among these stories, the most amazing Gas War happened on May 1st of this year.
At 9:00 on May 1, 2022, Beijing time, the Yuga Labs metaverse project Otherside plot NFT Otherdeed started casting. In just one hour, the casting contract destroyed more than 26,000 Ethereum, and the Gas fee on the chain was once Soared to nearly 10,000 GWei. 24 hours after Otherdeed started casting, the transaction volume on OpenSea reached nearly 12,300 Ethereum, and the contract destroyed more than 42,000 Ethereum, breaking into the top ten of the Ethereum destruction list in just one day . After the implementation of EIP-1559, the project set a number of gas-related historical records on May 1st. The single-day gas destruction record mentioned above is also the credit of Otherdeed, and this record is likely to be difficult to achieve in a short period of time. inside is broken.
Ethereum passed its 7th birthday last Saturday. In the past 7 years, Ethereum has come from doubts and broke out in the bull market last year. With EVM becoming the "standard configuration" of many new public chains, Ethereum has grown into an important benchmark in the Web3 industry. EIP-1559, which is being upgraded in London, has brought many wonderful stories. Although it is impossible to list them all here, this does not prevent the wheel of history from continuing to roll forward. After the upcoming merger, and Vitalik Buterin's imagination after the merger, there will definitely be more exciting stories for people to write in the future of Ethereum.
