"EIP-1559 will happen. Then, we will burn a lot of ETH," Conner tweeted, adding this move will bring about the issuance of new ETH tokens "from zero to negative."
After implementation, EIP-1559 will bring better user experience, stricter security features, larger transaction blocks (if necessary), and see the original after each transaction is processed by the Ethereum blockchain. ETH was burned. This is different from the current mechanism.
In its current form, Ethereum users can manually set their own "GAS" fees-tokens paid to miners to include transactions in instant blocks. However, this allows opportunists and wealthy users to bid for higher GAS fees and causes two major problems: network congestion and high fees for Ethereum usage.
These shortcomings limit the adoption and development of the network. But EIP-1559 brought major changes. According to the proposal, the network will automatically propose a "BASEFEE" price, which will be adjusted according to network activity, provide a set price for all transactions, and prevent speculative use from blocking the entire network.
It also introduced the element of deflation. With the consumption of GAS, a large amount of Ethereum will be burned, thereby reducing the supply of tokens. Such a move also addresses one of the most widespread criticisms of the Ethereum network, which is that the total supply of the Ethereum network (currently) has no upper limit.
The supply reduction proposal of EIP-1559 can be said to be one of the most attractive features for investors. Ari Paul, CIO of the investment company BlockTower Capital, said earlier this year: "The supply from reduced usage is a simple and convincing narrative that explains why various activities on the platform will benefit investors in the long term. "
He added at the time, “For different Ethereum holders, this narrative will be necessary for the next order of magnitude growth.”
Reducing supply based on usage is a simple and convincing narrative that explains why various activities on the platform will benefit Tier 1 investors in the long term. This narrative will be necessary for the next order of magnitude growth of different Ethereum holders.
-Ari Paul (@AriDavidPaul) June 27, 2020
Despite the promising prospects, EIP-1559 will not eventually exhaust all existing ETH. This recommendation applies to Ethereum’s current proof-of-work design, which itself is transitioning to the proof-of-stake network. This multi-stage transformation will gradually unbind miners and replace them with "stakers" running their own Ethereum nodes to verify transactions on the network.
resource: https://zero-pool.com/novosti/ethereum-developer-we-are-going-to-burn-a-lot-of-eth/https://decrypt.co/52157/ethereum-developer-we-are-going-to-burn-a-lot-of-eth