Huobi Research Institute Publishes Report on Ethereum Upgrade Protocol EIP-1559

Huobi Research Institute, the leading blockchain application research organization, today announced the publication of a report on EIP-1559, the newest upgrade to the Ethereum chain.


Judging from the data on the chain, the report concludes that EIP-1559 introduced four phenomena that go against market intuition.

First of all, Ethereum network fees did not significantly drop. The reason is that the "tax distortion" model suggested by market observers does not apply to the gas trading market, and that the motivation behind EIP-1559 was to improve efficiency rather than lower prices.

Secondly, EIP-1559 can help solve transaction congestion problems. Since the London Fork, block capacity has increased significantly, which can alleviate transaction congestion problems to a certain extent. The main reason for the increases in block capacity is the Base Fee price formula, which increased the average block utilization rate from 50% to 51.7%.

Thirdly, EIP-1559 did not cause Ethereum deflation, but it did succeed in slowing down its inflation, judging from Ethereum’s daily output and burn.

Finally, after the London Fork, mining income did not drop significantly. Even if we exclude ETH price increases, mining income did not significantly decrease. The main reason was because more than 80% of the transactions in the current block are generated in the original transaction (Legacy) mode, while the EIP-1559 transaction mode only accounts for about 20%.

Huobi: huobi.com
Huobi Research: https://medium.com/@huobiresearch

Disclaimer: The text above is a press release that was not written by Finyear.com.
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Vendredi 10 Septembre 2021


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