Vitalik Buterin Suggests New Fee Structure for Ethereum

By | January 6, 2022
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Arman Shirinyan

Vitalik Buterin Shows the World a New Way of User Fees on the Ethereum Network

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Vitalik Butering has published an official suggestion for a new fee structure for the Ethereum network, called “Multidimensional EIP-1559”, in reference to the previously implemented EIP-1559 update.

The suggestion in a nutshell

Behind the technical jargon, the calculations and formulas are simple suggestions that could, in fact, change the way fees work on Ethereum – different amounts of gas will be used for different operations on the network.

Today Ethereum uses a scheme where the same amount of gas is used for different needs on the network. For example, transaction data and average call data use only 3% of the gas in a block, while a “worst case” block contains 67 times more data.

Using a single resource for both the worst case and the middle case does not work optimally. Bottom line: Ethereum network users pay more when they could pay less for an operation on the network.

The new tariff concept will create a fair structure in which gas will be used more optimally, allowing users to spend less on various types of operations such as minting, transaction call data, and more.

Ways of realization

Buterin has suggested two ways to implement the new rate structure in the network: the cost of running the gas remains fixed and the operating costs depend on the type of resource used divided into the base rate.

The second option, “purer”, according to Vitalik, requires the implementation of a fixed base rate and an unlimited gas block. The priority rates paid to those who produce blocks on the network are equal to the base rates plus a percentage.

In addition to a more sufficient fee structure, the upgrade will add another layer of protection to the network.

Source: https://u.today/vitalik-buterin-suggests-new-fee-structure-for-ethereum

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