EIP-1559

The Ethereum Improvement Proposal 1559 is a proposal for the Ethereum Protocol, which aims to solve the high gas fees and inflation of ether.

The protocol proposal would introduce a minimum fee that automatically adjusts to network activity as well as a maximum fee. This will prevent gas prices from increasing immeasurably when there is high activity.

In addition, Ethereum has not pre-programmed an upper limit of tokens into the protocol, in the same way that Bitcoin has a limit of 21 million. Part of the transaction fees will be “burned” if EIP-1559 is applied, which could have a deflationary effect in the long run.

Whether and when this proposal will be implemented is still unclear.

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