Ethereum developers are persistent in implementing a proposal that most of the miners are against. The developers agreed that EIP 1559 would go live in July.
Fewer transaction fees, less supply
It was agreed that the Ethereum Development Proposal (EIP) 1559 would go into action with the London hard fork in July at the meeting among Ethereum developers today . The proposal aims to make Ethereum transactions more efficient. Thus, it is aimed to greatly reduce transaction costs and improve Ethereum’s overall user experience. The update to be brought will allow for transactions with less fees in Ethereum, while at the same time reducing the supply of ETH.
When the EIP development is complete, it may not have a direct effect on prices, but after the decrease in transaction fees and the introduction of the proof-of-stake system, ETH issuance will decrease further over time. It is stated that this development will also be of great benefit to layer 2 providers in scaling.
As is known, transaction fees have increased dramatically in the Ethereum network recently. Trading on Ethereum has become costly, which has led some users and developers to turn to alternative chains.
While Ethereum developers are determined to implement this update and set July for it, the majority of Ethereum miners do not support the update. Mining pools, which make up more than 60 percent of the processing power in the Ethereum network, are against the change that will be brought now, as it will hurt the revenue from transaction fees.