EIP-1559 has attracted a lot of people's discussion recently, and most people will still focus on the proposal to reduce the handling fee, but in fact, the essential purpose of EIP-1559 is not to reduce the handling fee. After understanding this, I believe most people should be able to understand why the miners oppose EIP-1559.
Previously, EIP-1559 was implemented on FILECOIN, and it did reduce the transaction fee on the chain. According to most of the current statements, this should be common to Ethereum, but it may not be the case.
The first thing we need to understand is how EIP-1559 works. Its main purpose is to divide the user's handling fee into two parts. The first part is the part for destruction, and the second part is the tip of the miner, which is the reward for the miner. section.
Secondly, we need to know why the miner fee is so high now?
The main reason is the increased demand for transfers on the Ethereum chain. The main reason for the increased demand for transfers is DEFI liquid mining and other applications, especially liquid mining, AMM exchanges such as uniswap and decentralized exchanges such as DYDX. Chemical exchanges have basically accounted for most of the transfer traffic on Ethereum. Therefore, the local tyrants set a very high gas price on the handling fee in order to be a step ahead. This is the reason for the high handling fee now.
And more than that, the DEFI project on the Ethereum chain does indeed have a high gold content, and the currency price is recognized by the market, such as crv, aave, compound, uniswap, etc., in fact, they all contribute a lot of traffic to the Ethereum blockchain. At this time, As long as there is money to be made, there will naturally be a steady stream of funds coming in, so there will be a rising gas price.
So if EIP-1559 is implemented, what will it bring to people?
For the liquid mining participants on DEFI, the impact may not be great, because if the liquid mining participants who competed with you before continue to play on the Ethereum chain, then you still have to Increase the gas price so that miners will prioritize packaging of your transactions, thereby gaining a time advantage. Similarly, other liquid mining participants also have this idea. Therefore, if DEFI on the Ethereum chain prospers, then the inevitable fee will be imposed on users. That said, it's still very high.
So for miners, the difference may be quite big, because part of the Ether fee income was originally owned by the miners, but now this part will be destroyed, so the miners’ income will be reduced a lot, and if they want to recover At the previous level of fee income, users on Ethereum must theoretically increase the gas price to more than double. Obviously, this is not possible in the short term.
In addition, for the price of Ether, due to the destruction of a part of the miner’s fee, it will inevitably reduce the level of inflation and may even cause deflation. Therefore, the Ether will have an upward momentum, that is, the price of the currency will rise. First, as the currency price rises, the gas price may remain unchanged. In fact, for users, the legal currency-based handling fee may increase. Therefore, for users, EIP-1559 is actually not as good as expected.
In the end, who is EIP-1559 good for?
Naturally, it is the large households who hold Ether. The large households here include not only large-scale miners and token holders, but also institutional investors, grayscale, etc., so for these people, it must be good, at least the currency When the price is raised, they will naturally benefit a lot.
The other is that for large DEFI participants, there is not much impact, because compared with their thousands of dollars at every turn, the handling fee of less than 0.1 is very low. For ordinary users, unless there are fewer people using the Ethereum chain, the miner's fee will decrease, otherwise there is almost no other possibility.