EIP-1559 Won’t Lower High Ethereum Fees On Its Own
Among several of the recently much-discussed Ethereum (ETH)-related events is the arrival of a particular Ethereum Improvement Proposal (EIP) that should help lower fees – but high fees are a scalability, not a mechanism issue, argues an expert. “No transaction fee mechanism, EIP-1559 or otherwise, is likely to substantially decrease average transaction fees; persistently high transaction fees is a scalability problem, not a mechanism design problem,” wrote Tim Roughgarden, an American computer scientist and a Professor of Computer Science at Columbia University.
In his recent analysis of this proposal, Roughgarden says that Ethereum now uses a first-price auction fee mechanism: each transaction comes with a bid, corresponding to the gas limit times the gas price, which is transferred from its creator to the miner of the block that includes it. “Looking toward the near future, good scaling solutions will be crucial for keeping transaction fees in check and more generally for encouraging the growth of the Ethereum network,” said Roughgarden.