EIP-1559, which will “burn” some ETH in every transaction, is part of the London hard fork.
August 4 is when the next upgrade to the Ethereum blockchain, which calls for altering how ETH is paid out to miners, will go live.
EIP-1559’s August 4 Launch Date
That block number has been suggested by developer Tim Beiko, the Ethereum Foundation’s network upgrade point person, in the open-source Github repository today.
In the event that several Ethereum client development teams come to an agreement, that goal will become a hard objective.
— banteg (@bantg) July 6, 2021
While we wait for the date to pass, the various test networks will have sufficient time to complete integrating the code and ensure there are no issues. About 12% of nodes on the blockchain were momentarily unable to sync during the last hard fork in April.
The so-called “London hard fork,” nicknamed after the Ethereum development conference that was held in London in 2015, is envisioned to usher in a deflationary future for the blockchain network.
The London network upgrade (EIP-1559) has been *proposed* to go live on the Ethereum mainnet on the 4th of August 2021 at block number 12,965,000.
Final decision will be made at the core dev meeting on Friday at 14:00 UTC.
— Anthony Sassano Ξ 🦇🔊 (@sassal0x) July 6, 2021
This hard fork is a major update, including Ethereum Improvement Proposals (EIPs), modifications to the code put forth by the community, and accepted by stakeholders, including developers and miners who verify and process transactions by operating the Ethereum network.
How Will EIP-1559 Work?
The “burning fees” proposal, EIP 1559, reverses the order of a normal blockchain transaction to solve a variety of issues with Ethereum’s user experience. In order for a transaction to be included in a block, a user must pay a gas fee to the miner.
The gas charge will now be sent to the network as a base fee-like “burn,” with miners getting an optional tip. An algorithm is also used to calculate the burning fee, ostensibly to make it easier for consumers to pay a fair amount.
Instead of lowering transaction costs, the EIP aims to make them more predictable. As a consequence of a more predictable base charge, EIP-1559 may result in lower gas prices, assuming that customers would overpay for gas less often.
With EIP-1559, the basic cost will increase and fall by 12.5 percent when blocks are filled to more than half capacity. For example, if a block is 100% full, the base charge will increase by 12.5 percent; if it is 50% full, the base fee will stay the same; and if it is 0% full, the base fee will decrease by 12.5 percent.
The main element in reducing expenses will be the continued migration of applications to rollups and Layer 2s. Because the protocol handles the basic fee, wallets like MetaMask will be able to make more accurate forecasts and will not have to rely on external oracles as much.