Ethereum is about to moon meteorically, that is if the EIP-1559 upgrade witnesses a successful rollout. The entire Ethereum ecosystem has been excited as they await the integration of the long-awaited Ethereum Improvement Proposal, but with Ether users and insider sources dropping bullish tweets about the perceived future of the Ethereum network, post the EIP-1559 upgrade, there are many more reasons to remain excited.
The Berlin Fork was a success, but EIP-1559 will be bigger
Upon the completion of the Berlin hard fork, which went live on Thursday of last week, four EIPs were introduced to the network.
EIP-2565 is geared towards slashing the cost of “modular exponentiation” based transactions while EIP-2718 employs envelope transactions to add a new type of transaction logic to the Ethereum network.
EIP-2929 raises the cost of gas for a special kind of transaction known as “op-code”, while EIP-2930 is responsible for creating a base for users to develop future templates among other things. Although none of the aforementioned has anything to do with significantly reducing the high gas fees on the network, EIP-1559 which is scheduled for July or August could change the game for the network.
A continuous Ether burn will shorten supply and cause Ether to surge
According to Ethereum proponent Anthon Sassano, Ethereum will burn every single transaction running on the network, once the EIP-1559 upgrade debuts. He shared this bullish take on Twitter, part of which reads :
“Once EIP-1559 is implemented, every single transaction on Ethereum will burn ETH. Every liquidation, every ETH transfer, every layer 2 proof, every DEX trade, and even every rug pull – it doesn’t matter what the transaction is – ETH will continue being burned.”
According to an analysis conducted by Dune, almost 1 million Ether would’ve been burned last year, if the EIP-1559 upgrade launched earlier.
Essentially, EIP-1559 is expected to integrate a burn mechanism into Ethereum’s network. Meanwhile, as opposed to the rumors that the EIP-1559 will solve Ethereum’s scaling problem and reduce fee charges, Abdelhamid Bakhta, one of the developers behind the EIP has clarified that other layer 2 solutions are more positioned towards fixing those issues.
EIP-1559 will, however, increase the capacity of the network significantly. Although the proposal is a temporary fix to some of Ethereum’s network issues, Sassano reckons that the overall internet from community members is proof that the proposal will serve its term efficiently.
“It took almost 2 years to get EIP-1559 implemented with literally 99% of the community wanting it.” He noted.