Cryptocurrency news

The community will Finance the solution to the problem of high commissions in Ethereum

The community will Finance the solution to the problem of high commissions in Ethereum

Ethereum developers have turned to the community for additional funding to solve the problem of high transaction fees on the network.

The community Foundation in the gitcoin open source developer network will Fund rewards for finding bugs and encouraging participation in the test network for the Ethereum improvement proposal (EIP) 1559.

EIP 1559 sent
to solve problems with the existing transaction fee model, which forces users to pay more than necessary. The Commission structure proposed in EIP 1559 adapts autonomously to the requirements of the network and allows users to pay only the Commission that is really necessary for the transaction.

While the main part of the development is funded by Consensys, the need for funds continues to grow. So far, the Gitcoin community Fund, which started operations at the end of last week, has
at its disposal, more than 36 ETH and $16,216 in stablecoin DAI. Gitcoin plans to partially Finance the development of EIP.

According to the current model, the Commission rate usually increases when the network is overloaded. To speed up the transaction confirmation process, users can increase the transaction fee so that it is in the priority of the miners.

But users often inflate the Commission themselves in an effort to speed up transaction confirmation. If EIP 1559 is accepted, the Protocol itself will determine the required Commission amount. Recently, the median amount of commissions in the Ethereum network has reached
the highest level in the past two years due to the growth of the DeFi industry and the increase in transaction volumes of stablecoins.

Ethereum co-founder Vitalik Buterin spoke about EIP 1559. He tweeted:

“I expect that EIP 1559 will significantly reduce the frequency of large commissions sent by mistake and eliminate the need for users to set the Commission amount manually.”