The ethereum community raises funds in order to implement the latest ethereum improvement protocol EIP-1559 which will make or break the network. if you have been following our Ethereum news, you have already heard about the new improvement proposal that outlines anew feature to the blockchain.
The proposal will change how transaction fees work on the network and will make the fees much more predictable when burning ETH once transactions are sent. If implemented, the EIP-1559 improvement protocol will be the first major change to the blockchain’s fee model. The Ethereum community raises funds therefore, to implement the proposal and also tune thousands of dollars worth into the crypto stablecoin DAI.
As mentioned on the last implementers' call, the goal is to use funds to both pay for multi-client development, testing/auditing, and for the community to signal its support for the EIP.
— Tim Beiko | timbeiko.eth (@TimBeiko) June 26, 2020
In April last year, some of the top blockchain developers and researchers came out with the new proposal and one of the authors was Vitalik Buterin himself, the founder of Ethereum. The idea of the proposal was that the fee model ETH has is “inefficient a needlessly costly to users.” This comes despite Bitcoin and other similar coins have users bid on the market to get their transactions included in the blocks first. To solve this problem, the authors proposed an establishment of the market rate for transactions will burn a majority of the ETH spent on each transaction as David Hoffman wrote:
“The purpose of EIP 1559, according to Eric Conner, is to provide wallets and users a much needed improvement to the user-experience of gas management. The way that EIP 1559 solves the gas-management problem also improves Ethereum’s monetary management system.”
The EIP flew under the radar for a few months and the proposal only went mainstream in the ETH circles. However, there are many excited about the change. Ethereum proponents and developers launched a grant for the EIP-1559 on the decentralized funding platform Gitcoin back a few days go and then $25000 were raised. The funds will be used to cover the expenses related to the development of the platform and will focus on implementing EIP into clients, providing big bounties.
EIP 1559 is make or break for ethereum.
— Ari Paul ⛓️ (@AriDavidPaul) June 26, 2020
The DAI raised via the Gitcoin grant adds to the capital that is put into this project by the ETH foundation and Consensys. Thanks to the EIP-1559 changing some of the most important features, transaction fees, and monetary policies which many speculated on the importance of the effects. Ari Paul the CIO of Clocktower capital, even said that this proposal will make or break ethereum.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]