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this ethereum update will destroy the coins

People are enthusiastic about EIP-1559 because it would “burn” or destroy ether, the network’s cryptocurrency. The base price is not paid to miners; otherwise, they may purposefully congest the network to keep the fee high. Instead, it’s obliterated. Some investors believe that the fact that ether’s supply will be limited by burning will result in a price explosion.

However, developers claim that the impact on price is uncertain. It also depends on factors such as transaction volumes, which impact the size of gas fees and thus the amount of ether destroyed.

“We don’t know exactly what the effect will be in terms of ether burned until it’s deployed,” said Ben Edgington, an ethereum engineer at ConsenSys.

Transaction fees will not always be lower.

The ethereum network’s transaction costs may decrease because a more predictable base charge will help consumers overpay less frequently than under the highest-bidder-wins mechanism.

EIP-1559, on the other hand, does not seek to reduce transaction fees; rather, it seeks to make them more predictable. The base charge will fluctuate, rising when the network is busiest and down when things are quieter.

“We don’t know exactly what the effect will be in terms of ether burned until it’s deployed,” said Ben Edgington, an ethereum engineer at ConsenSys.

Transaction fees will not always be lower.

The ethereum network’s transaction costs may decrease because a more predictable base charge will help consumers overpay less frequently than under the highest-bidder-wins mechanism.

EIP-1559, on the other hand, does not seek to reduce transaction fees; rather, it seeks to make them more predictable. The base charge will fluctuate, rising when the network is busiest and down when things are quieter.

Developers are also aiming to expand the ethereum network by connecting and adding other side networks.

 

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