EIP 1559

Changes to fee model

before

• First price auction
• Miners sort by highest gas price
• MetaMask enables slow, average, fast preferences
• not ideal for users & expensive during peak times
• Payment to miner = block reward + gas fee
• Miner receives block reward + gas fee

problems

• Predictable transaction fees
• Delays in transaction processing
• Confusing fee bidding system & unprocessed transactions

after

• Base fee is set per block based on how congested the network is
• Block size can be doubled from 12.5M Gwei to 25M Gwei causing the base fee to increase
• Base fee can increase by 12.5% per block
• Miner tip to incentivize miners to include transaction
• Payment to miner = block reward + base fee + tip
• Miner receives block reward + tip

differences

• Less profit for miners
• More network activity = more eth burnt = less Eth in circulation
• Make gas fee lower? no