New Ethereum Update, EIP-1559 To Launch On 4 Aug

The Estimated Target Date for EIP-1559 is Thursday, Aug 05 2021 17:38:27 GMT+0530 (India Standard Time).

Written By:
Jahnu Jagtap

New Ethereum Update, Eip-1559 To Launch On 4 Aug

The long-awaited EIP-1559 update of the Ethereum blockchain is ready to go live in August. The Estimated Target Date for EIP-1559 is Thursday, Aug 05 2021 17:38:27 GMT+0530 (India Standard Time).

Countdown

EIP-1159 has deployed on Mainnet Ethereum

check the Burn details here https://ultrasound.money/

Eip-1559, London upgrade is scheduled to go live from block 12965000. It will introduce reforms for the transaction fee market, along with changes on how gas refunds are handled and the Ice Age schedule.

The authors of the Eip-1559  proposal are Vitalik Buterin, Eric Conner, Rick Dudley, i Bakhta. They completed it on 2019-04-13 and completed its review 2021-07-14.

What is Ethereum EIP-1559 update?

EIP-P1559 is a transaction pricing mechanism that includes a fixed-per-block network fee that is burned and dynamically expands/contracts block sizes to deal with transient congestion.

EIP 1559 is a proposal to reform the Ethereum fee market, with the following key changes:

  • The current gas limit is replaced by two values: a “long-term average target” which is equal to the current gas limit. And a “hard per-block cap” which is twice the current gas limit.
  • There is a BASE FEE (which is burned) which transactions are required to pay, which gets adjusted on a block-by-block basis with the goal of targeting a value so that average block gas usage remains at a level close to the current gas limit.

Essentially, instead of all of the short-term volatility in demand for transaction space within a block translating into volatility in transaction fees, some of the volatility instead translates into volatility in block size.

EFFECTS OF EIP-1559

With the new improvement, the user would send the gas fee to the network directly. Then the network would assign a tip to miners. It lowers transaction fee volatility by burning the prices paid in ETH instead of paying miners. 

Additionally, the base network fee will now burn on each transaction, potentially leading to deflationary token economics for ETH. It will also reduce risks associated with miner extractable value (MEV). The proposal is widely anticipated by nearly all Ethereum community members, including investors, speculators, and regular users of the network. The least excited group about the proposal is Ethereum miners, as they will almost lose their 20% to 35% revenue.

Also Read: Ethereum London Hard Fork Goes Live on Testnet Starting June 24

The core dev. of Ethereum TIM BEIKO had posted on ethereum.org EIP-1559 will be live on Mainnet this April could be thought of as an “ETH buyback” proposal earlier this year. EIP-1559 could make ETH a deflationary asset. Although the update was delayed most probably due to the loophole Martin Holst Swende identified. Fortunately, the issue is solved. Now, EIP-1559 is all set to launch and looking at the current transaction rate it is estimated to launch on Aug 05, 2021, 17:38:27 GMT+0530 (India Standard Time).


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Jahnu Jagtap is a Research Analyst with over 5 years of experience in crypto, finance, fintech, blockchain, Web3, and AI. He holds a BSc in Mathematics and is certified in Blockchain and Its Applications (SWAYAM MHRD), Cryptocurrency (Upskillist), and NISM Certifications. Jahnu specializes in technical, on-chain, and fundamental analysis, while also closely tracking global macro trends, regulations, lawsuits, and U.S. equities. With a strong analytical background and editorial insight, he drives content that delivers clarity and depth in the fast-evolving world of digital finance.