• 200,000 ETH or more EIP-1559 caused a fire

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

    According to ethburned.info, a total of 204,281.8 ETH worth $682 million has been burned.

    Each hour, approximately $1.2 million worth of ETH, or 300 ETH, is burned. Today, 4,877 ETH has been burned. The network burned 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 validate transactions using proof-of-work computations. The switch to EIP-1559 was unpopular among miners who had spent money on graphics cards capable of mining Ethereum.

    Ethereum’s blockchain will “merge” with the proof-of-stake version later this year or early in 2022. However, Ethereum 2.0 will not have the same smart contract functionality as Ethereum 1.0 for several years.

    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 ongoing resurgence of NFT projects.

    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 used 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.

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