Vitalik Has Proposed A New Fee Structure For Ethereum

Vitalik Buterin, the co-founder of Ethereum, has decided to improve the fee structure of the cryptocurrency once again, after changing it recently. The proposal was titled EIP-1559 Multidimensional and was laid out as a blog on Wednesday in which the founder noted that most of the different resources used in the EVM have a few different demands in terms of gas usage.

He added that there were various limits to short-term burst capacity which directly contrasted with sustainable capacity within the EVM, citing examples of block data storage, block state size changes, as well as witness data storage.

Vitalik Buterin has a new plan for Ethereum

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Vitalik believes that the main problem that has plagued Ethereum is that directing every form of resource to a single source will certainly lead to suboptimal gas costs when the limits are incorrectly terminated. Buterin then went on to outline the somewhat complex changes he proposed with a lot of technical math on his way – but in short, the proposal was about offering two interesting solutions through multidimensional pricing.

The first option, according to Vitalik, would be to calculate the gas cost of resources such as storage and contact data by dividing the base fee for each single unit of the resource by the total base fee at the end. The base fee is simply a fixed network fee for each block included in the Ethereum Improvement Proposal 1559 algorithm.

The second proposal, albeit a bit more complex, would set a base fee for resource usage, but would then include severe blast limits on each individual resource. There will also be the majority of priority fees, which are stated as percentages and end up being calculated by multiplying the percentage of the base fee.

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Vitalik stated that the main drawback of the multidimensional fee structure is that most block creators will not be able to accept transactions in order from highest to lowest.