The fees of the Ethereum network remain very high, which leads to calls for reform.
The transaction fees of Ethereum ( ETH ) are higher than those of its big competitor Bitcoin ( BTC ) for the second month in a row
The crypto market researchers from Messari drew attention to the corresponding development on October 8th and pointed out in this context that this is the longest period in which the Ethereum transaction fees have exceeded Bitcoin.
The transaction fees of Ethereum had shot to new record levels in August, which is primarily due to the ongoing trend towards decentralized financial services ( DeFi ), which are largely based on the Ethereum network. The so-called smart contracts, on which the DeFi are based, automatically execute transactions on the blockchain, which in turn clogs it up in view of the large volume.
Ethereum transaction fees currently average $ 2, with a record high of more than $ 14 on the tableau in September
The steep rise in transaction fees has sparked a heated debate within the Ethereum community about whether a reform of the fee structure may be necessary in the run-up to the upgrade to ETH 2.0, which should not take place until 2022.
Tim Beiko from ConsenSys published the results of a survey of 25 development teams working on the Ethereum blockchain on October 8th, the subject of the survey being the suggestion for improvement EIP-1559.
The EIP-1559 stipulates that the transaction fees have a fixed value, of which the miners are each paid a small part. A further part of the fee would be „burned“, ie destroyed afterwards, depending on how clogged the network is at the time.
Of the participants, 60% were in favor of EIP-1559, while 13% were against it and 27% were neutral. The surveyed development teams come from crypto exchanges, wallet providers, app providers and miners. The respondents rate the better predictability of the amount of the transaction fees and the „incineration process“ positively. This is how Beiko sums it up:
“The biggest advantage that crypto projects see in EIP-1559 is the better predictability of transaction fees, which is especially important for projects that pass them on to their users. They also see the burning of ETH as an advantage with every transaction. “
Probably the most important point of criticism of the improvement proposal is that it would reduce the miners‘ income. The implementation and inadequate technical formulation are also viewed critically.
So it is hardly surprising that eight of the nine surveyed mining companies would reject the EIP-1559.