- Vitalik Buterin participated in a new proposal called “Multidimensional EIP-1559”.
- The update will affect the Ethereum gas fee markets, the base fees charged for various resources within the Ethereum Virtual Machine.
- EIP-1559 was introduced in August to make Ethereum gas fees more predictable. It involves burning a portion of ETH with each transaction, making the supply even scarcer.
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Vitalik Buterin has published a new article dealing with the Ethereum gas fee markets. Specifically, he discussed the launch of a new “multidimensional” update for the EIP-1559.
Vitaik Buterin presents a new proposal for Ethereum
Vitalik Buterin has suggested a new update for Ethereum.
In a new blog post, Buterin has Developed Two options for implementing what he called “multidimensional EIP-1559”. In it, he discussed the Ethereum gas fee markets in relation to various resources, with specific reference to the use of the Ethereum Virtual Machine, block data, witness data, and case volume filling. Buterin noted that these resources are currently pooled “One multidimensional resource.”
The problem, Buterin wrote, is that the current system does not handle the differences in the different resource limits in the Ethereum Virtual Machine efficiently. As an example, Buterin showed how transaction data as well as contact data transaction consume only 3% of the gas in a block. Buterin added that some blocks can contain 67 times more data than an average block.
Buterin pointed to two limits in the Ethereum virtual machine as a solution to the problem: explosion capacity and sustainable capacity. While Buterin referred to blast capacity as the capacity that can be handled in “one or a few blocks,” sustainable capacity is the capacity that can be comfortably supported over the long term.
With the multidimensional EIP-1559, Buterin proposed the introduction of a “burst limit” and a “sustainable target”, in which the amount of resource in any block does not exceed the burst limit, while also approaching a long-term average consumption equal to the continuous target. This will allow EIP-1559 targeting schemes to be used for each distinct resource.
EIP-1559 is one of the most important Ethereum updates in recent years. It was launched as part of London Steel in August and introduced base fees on Ethereum transactions in order to make gas fees more predictable on the network (previously using the bidding system). Crucially, the core fees are also burned, making ETH supply even scarcer. After consolidating with proof of stake, ETH is likely to become a deflationary asset due to EIP-1559.
Buterin set two options for the EIP-1559 multidimensional input. In the first option, the gas price for resources such as contact data and storage usage will be calculated by dividing the base fee for one unit of the resource by the base fee. Another, more difficult option might involve setting the base fee for resource use at a price, such as 1 wi. In contrast to the first option, in this case there will be no limit on the mass gas, but instead, there will be no explosive limit on each resource. The priority fee will also be different because it will be based on a percentage, block producers receiving priority fee payments equal to the base fee multiplied by the said percentage.
Buterin received mixed reactions to the proposal. Oisin Kyne of Obel Network commented: “I think this would be a reasonable proposition although I imagine it would be a major engineering undertaking.” Carl Flosch of Optimism added that he was concerned about “backward compatibility of the EVM” and thought the first option was more realistic, prompting Buterin to respond that he agreed it would be a “less risky change”.
Either way, the change isn’t likely to be implemented on Ethereum anytime soon. The network is currently preparing to merge into Proof-of-Stake in what will be its most significant update to date. It’s due to happen sometime in the first half of this year; The Kintsugi testnet is now running. Then, fragmentation will follow, so it may take some time before any additional modifications are implemented to the EIP-1559.
Disclosure: At the time of writing, the author of this article owns ETH and several other cryptocurrencies.
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