A Proposal To Burn Ethereum Transaction Fees

The Cryptoverse
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Automatic TRANSCRIPT

So a proposal to ben a theory of transaction fees. This is coming from an e. Ip which i will link in the show notes feliciano e ip stands by theory improvements proposal. So now i'll do is. I'm going to read just the abstract on the summary from this thing. And then i'll give you my comments on it. So i actually came across this on git hub. This thing. was originally created in april two thousand and nineteen and has been in development since then and this is all according to harvard and give hope they've logged all of their calls developing development team and if the regulating the less meeting they had on this particular thing was The thet december twenty twenty. So this roy up to date in fact the less meeting that they had at the summary notes for the goal from the december he says generally feeling is that there was enough robust analysis and research with this improvement to begin discussing the next steps in the process i e how to move forward introducing too old cord avs and the theory of maintenance exciting. So that's how close they says to going onto the maintenance right. I think perfected over the of the last year or something booked with talking yet. So they're improvement. Proposal fifteen fifty nine fee market for one point out so. This is an improvement for the existing chain while ago gates shoes on so the simple summary is this is a transaction pricing mechanism. They includes a fixed pad block network feet that is bend and dynamically expands or contracts block sizes to deal with transient congestion. So what does that mean the problem. We have right now. They've got a difficult forming problems with the existing model. The fed will quote is a mismatch between volatility of transaction fee levels and the social cost transactions. The basically say that you one minute. You can have a Network free that's two hundred times what it was a minute ago right depending on just massive spikes in demand for network resources and stuff like that which seemed ridiculous. It's completely unpredictable. At second problem. Is it ends up. With needless delays for uses so does no good as socially unproductive as they call it. Where was the slack in the system to meet block by block demand while that would be met by so the listrik book sized that goes up if the blocks full and goes down if the blocks unfaithful pretty sweet scandal like the big oin difficulty. Adjustment mechanism is for blocksize. Rather than mining difficulty kind of kind of climate also says the problem is the inefficiencies of first price auctions. So what that means. Is that The minute of its to use sophisticated algorithms to estimate what fee to charge the uses of the wallet. And even though they're you know that just doesn't work. Right you end up overpaying the fee or you think you can get confirmation fifteen seconds and it takes three minutes and then you have to submit the transaction again with a high of face. Just it's just a mess right. And then the third thing is they will they call the instability of blue with no block reward. And they say well think about in the long run blockchain bitcoin. They intend to switch to rewarding minus entirely on transaction fees. You know when the bitcoin blocker would reaches next to nothing and they said will there were no issues with this kind of thing instability and so on selfish mining attack vectors and does no good solution for this at present. So what they're proposing to do is twofold one is have. This elects the block size thing where grows books of fold and shrinks of block saw you know novel and then also introduced a different pricing mechanism for transaction fees which would be that would be to to transaction fee going forward one would be this fixed a transaction fee pueblo. Which again go up and down with the blocksize. So you pay that and that base based transaction fee pet blog which would be absolutely known that would get burned right so like i spent boom johnson. Then if you wanna make sure that said your transaction gets into the blog than you can include an additional minor. Bribe as they call on top of the base fee said the minor didn't get any of the because we know that gets burned but they would get the minor bribe and the block reward so they still get two sources of revenue. The blocker would that remains the same They get the minor bribe and then they base fee gets burned. Okay well you might think well as because she's gonna cause the same problem as we've got now no it's not because was different now. Is that the book. Size is going to expand and contract so even if you don't include a minor bribe your wallet will know what the current fixed block transaction fee is and it will know what the next one is as well. So that means that in your wallet when meta mascow. Whatever will you're using. It will be able to quote you very precise transaction fees and the predictability of how soon that will go through and get confirmed. He's also much more set in than is now so that's does really right. You want the detail on how this works. Technically they've even got technical specification and a bunch of solidity code solidity code of how this will work including houses going to be backwards compatible. And how do you order. Transactions and blahdy blahdy. Bob so does that well. If you want my comments on this area. I think this should have been the design of a theory from day. One in fact. When i stood at dairy month old. This was high worked. A thought will gas right. if it's fuel surely is being burned and destroyed and took me quite a while to find out that that wasn't the case to find out the miners. Who gained all these fees on the blogger would which i four was bombing. The second thing is that if this does get implemented nobody does. It will be a massive economic boom for the theory token as an a theory in token hold. I'd be well pleased with this. Especially this would have a big effect on theory and stop the flow ratio. Which of course is top of my mind right. Now since i'm studying under safety and moose and his new book fiat standard. I'm a fan of the standard at any way. But you know that's what sir. I'm studying day to day right now. So i'm always thinking slow. Soaked floor ratio so this proposal would mean that the stock of a theory and will be constantly being reduced to offset some of the inflation for the mining rewards at the minute. He's just constantly inflating with booker woods. there's no destruction. there's no system level destruction anyway might accidentally send some their into the wrong address or whatever but the system doesn't doesn't create any deflation and this would do so on that point while we're talking about you but if i go to f gas station dot info it does have a leaderboard of the biggest guest banners right so actually lofton's articles the the They put on. The side is cold gas burners but as we know until this is implemented this proposal they don't banning gas at all alley just fees going through the contract to the minus with the number one. Let's call him guest bene- right now on the network is the union contract and in the last thirty days the amount of transaction fees going through that contract is twelve point. Seven million dollars worth of ethereal. Oh near enough to day. Two thousand f has been spent on transaction vs pretty significant amount if this proposal was implemented that would mean that in the last days unique swap would be responsible for destroying the two thousand ethereal just brilliant bending they two thousand theorem just from the fees that uses paint to use union swamp great and then tether another twenty six thousand theory would be banned in the last days because of that. So if you wanna in theory times these they say two thousand if theory of the what would ban twenty six thousand. That ted would ban if you want in. Us dollar terms it means units will be bending fifteen million dollars of theorem everyday days and tether will be betting ten million everyday days. I think those would go though. Remember is the capacity of the network would increase with this elastic book size so every time a block is full the next book slightly bigger so absolutely balmy so when when when the network is congested well more transactions go through every book which means more theory and guest band so the busy of the network is the more fees get panda. The big of the fees is self fulfilling prophecy. So i'm of course i'm talking from an economic point of view. If you're in a theory of togo you'd you definitely want this to be implemented because it it. It makes a theory more scarce doesn't it because it's bending the stalk of a theory all the time

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