The fee market Ethereum Improvement Proposal (EIP) 1559 is expected to launch this year according to Danny Ryan, an eth developer.<\/p>\n
“R&D on this item has picked up steam in the past 12 months, and we optimistically will see 1559 fee mechanics on mainnet in 2021,” Ryan said.<\/p>\n
Just recently there were suggestions this EIP is pretty much finished code wise, but it appears to have attracted some resistance from miners.<\/p>\n
Ryan however says this improvement proposal is very beneficial for the ethereum network, stating:<\/p>\n
“1559 style fee mechanics will be native to eth2\u2019s sharded data layer. This will allow for a better UX to Ethereum\u2019s data consumers when attempting to chuck data into the Ethereum network, most tangibly aiding rollups in confidently checking their block data into the beacon chain.”<\/p>\n
The fee market proposal makes network fees more predictable by setting a base fee that targets 50% network usage, with the fee then increasing or decreasing accordingly.<\/p>\n
That base fee is burned, changing the supply and demand mechanics, with users able to add an extra fee if they really want priority.<\/p>\n
Once there is data sharding, this predictable fees mechanism will allow for more efficient usage of second layers like rollups, which host some of the data on-chain.<\/p>\n
It is expected to go out after Berlin, the much delayed eth1 upgrade that doesn’t contain any juicy EIP as far as we are aware.<\/p>\n
Berlin might go out by spring, with the fee market proposal then following perhaps even by summer, while Ryan says optimistically it should be out sometime this year.<\/p>\n
At which point the scarcity of ethereum will change depending on network usage as a percentage will be burned every day through the base fee mechanism.<\/p>\n