According to an Ethereum Core developer named Eric Conner, the highly-awaited Ethereum Improvement Proposal, or EIP-1559, is inevitable, and it shall burn a whole lot of ETH as a result. The developer added that the EIP-1559 entails zero to negative issuance of newly-minted ETH tokens.
It is no secret that Ethereum currently suffers from outrageously high gas fees brought mainly by the network’s still-growing transaction fees and many network congestion issues. The EIP-1559 aims to change all that. Once implemented, it will bring about a far better user experience along with more robust security features. Furthermore, it will also bring forth much larger transaction blocks as well as the element of burning ETH after every processed transaction. Without a doubt, the EIP-1559 is a drastic change from the current mechanism that Ethereum utilizes.
It also notably introduces a deflationary scheme, wherein when gas is spent, a sizeable portion of its amount in the form of ETH will be burned. This will then create a diminishing supply of ETH, which is a far cry from its current stature of being uncapped. This feature is also perhaps the most enticing for the investors – as fewer tokens mean larger profit.
CIO of prominent investment company BlockTower Capital, Ari Paul, supplemented this by stating that a reducing supply function reaffirms to the investors the benefit of engaging with such platforms. He then adds that Ethereum surely aims to do just that and will undoubtedly benefit all in the near future.