Ethereum’s highly talked about London upgrade, and EIP-1559 update has finally arrived this Thursday at the precise network block height of 12,965,000. Following the implementation of the upgrade, Ethereum may now undergo significant changes with respect to its transaction fee market, gas fee refunds, and other noteworthy parameters.
While the community highly appreciates the many changes the London hardfork delivers for the blockchain’s Ethereum Improvement Proposal (EIP), it is the EIP-1559 update that has the community most excited.
The EIP-1559 aims explicitly to alleviate the notoriously high gas fees of Ethereum by introducing a base fee. This means that both wallet providers and users may now determine the price of a particular transaction in advance, thus, mitigating the instances of underpays and overpays, which were now seemingly ordinary before the update.
On top of that, the EIP-1559 also intends to burn the base fee with each successful transaction – deliberately decreasing the total circulating supply of Ether (ETH). This has led many of the network’s supporters to profess that the new London upgrade will subsequently propel ETH to deflationary asset status.
Predictably, the new upgrade sparked a steady increase in ETH’s global market price. Following the announcement of the London hardfork implementation, ETH went up by about 4% to now comfortably sit around $2,800 apiece, as of press time.