EIP-1559 has destroyed over 200,000 Ethereum.

 75 Interactions,  2 Today

The Ethereum blockchain is on fire.

EIP-1559, a recently implemented upgrade that burns transaction fees that used to go to miners, has burned more than 200,000 ETH (about $675 million at the prices at when it was burned).

A total of 204,281.8 ETH has been burned, worth some $682 million, according to ethburned.info.

Each hour, approximately $1.2 million worth of ETH, or 300 ETH, is burned. Today, 4,877 ETH has been destroyed. The network consumed 10,675 ETH yesterday and 13,839 ETH on Friday.

EIP-1559 was introduced in early August as a means of speeding up the transition to Ethereum 2.0, the next generation version of Ethereum that shifts the blockchain from proof-of-work, a computationally intensive method of verifying transactions, to proof-of-stake, an environmentally friendly algorithm that uses far less energy. To accomplish this, EIP-1559 removes ETH from circulation rather than paying it to miners who confirm transactions using proof-of-work computations.

The move to EIP-1559 was unpopular with miners who had shelled out money for graphics cards that are adept at mining Ethereum.

See also  Former Ethereum developer Virgil Griffith is unaware of the exact crimes he is being charged with.

Ethereum will “merge” with the proof-of-stake version of its blockchain later this year or early in 2022. However, it will take a few years before Ethereum 2.0 will have the same smart contract functionality as Ethereum 1.0.

One expected side effect of EIP-1559 was that fees would decrease or become more predictable. However, Ethereum fees remain exorbitant—and are expected to rise further due to the continued comeback of NFT initiatives.

A single swap on Uniswap costs $76.31 at the time of writing, and an ERC-20 transfer costs $24.8. The largest gas guzzler is NFT marketplace OpenSea, which utilised 11.65% of all gas on the Ethereum network in the last 3 hours and 15% in the last day.

Miners will undoubtedly be envious.


Subscribe to our newsletter


Leave a Reply

Your email address will not be published. Required fields are marked *