What stories did EIP-1559 bring to the first anniversary of the Ethereum London upgrade?

In 2021, Ethereum has undergone two more important rounds of hard fork upgrades. The first is the Berlin hard fork at block height 12,244,000. The upgrade includes various optimizations to contracts, including gas efficiency, updates to the way the Ethereum Virtual Machine (EVM) reads code, and other changes to prevent DDOS attacks. .

If the Berlin hard fork upgrade is just some minor repairs on the basis of Ethereum at that time, then the London hard fork upgrade completed at block height 12,965,000 (August 5, 2021 Beijing time) is a change to Ethereum’s Gas A “reform” in the mechanism.

The London hard fork upgrade contains 5 core improvements, namely 

  • EIP-1559 (Reform of Fee Market)
  • EIP-3198 (BaseFee opcode)
  • EIP-3529 (Reduce Gas Refund, invalidate Gas Token, serve EIP-1559)
  • EIP-3541 (reject new contracts starting with 0xEF)
  • EIP-3554 (Difficulty bomb postponed to first week of December 2021)

Among them, EIP-1559 is the most concerned by the market. This improvement proposal proposes a mechanism for optimizing Ethereum transactions, aiming to make transaction fees on the Ethereum network more predictable and solve the previous “pay-as-you-go” fees. mode problem. The goal of EIP-1559 is to create a more efficient charging market and simplify the gas fee payment process for client and application software, thereby eliminating the potential for users to pay unnecessarily high gas.

In short, EIP-1559 makes the Gas fee “predictable”, BaseFee is public, and if you want the transaction to be confirmed as soon as possible, you can use the tip to let miners increase the priority of the packaged transaction. Until now, gas fees have been subject to a closed auction model, making gas fees unpredictable and some transactions costing more than they actually need to be packaged as quickly as possible. In addition, due to the destruction of BaseFee, the inflation rate of Ethereum has also decreased to a certain extent.

One year has passed since the official implementation of EIP-1559. During this year, the destruction of BaseFee brought by EIP-1559 produced a lot of interesting data.

Total Destruction

According to data from ultrasound.money, as of block height 15,276,831 (0:00:02 on August 5, 2022, Beijing time), the total amount of Ethereum destroyed has reached 2,571,183.34, which is worth about $4.14 billion at current prices.

Within 24 hours after the London hard fork upgrade, the amount of Ethereum destroyed was about 4,700; within a week of the upgrade, the amount of destruction exceeded 30,000.

After that, the amount of Ethereum destroyed will exceed 50,000 pieces on August 16, 2021; it will exceed 100,000 pieces on August 26, 2021; it will exceed 200,000 pieces on September 5, 2021; it will break through around October 11, 2021 500,000 pieces; it will exceed 1 million pieces around November 24, 2021; it will exceed 2 million pieces around March 21, 2022.

During the year, the additional issuance of Ethereum was 4,623,662, and the destruction accounted for about 55.61% of the total additional issuance, making the inflation rate of Ethereum drop to 2.4% over the past year. According to Nansendata, transactions supporting EIP-1559 stabilized at around 80% recently, but suddenly dropped to 60% yesterday. The reason is unknown.

The first anniversary of the Ethereum London upgrade, what stories does EIP-1559 bring?

In addition, according to The Block data, the highest value of Ethereum’s single-day destruction occurred on May 1 this year, and about 71,720 Ethereum were destroyed in a single day, which was nearly 60,000 more than the additional issuance of Ethereum on that day.

Project Destruction

According to the data of ultrasound.money, the top ten contracts of Ethereum destroyed are (some data may have errors):

  • Ethereum transfers (237,438.18 pieces)
  • OpenSea (230,049.80 pieces)
  • Uniswap V2 Router 2 (135,647.61 pieces)
  • Tether (112,497.21 pieces)
  • Uniswap V3 Router 2 (90,035.51 pieces)
  • OpenSea trading contract (70,772.36)
  • Otherdeed (56,008.67 pieces)
  • MetaMask transaction routing (51,032.13 coins)
  • USDC (48,057.74 pieces)
  • Uniswap V3 Router (47,663.68 pieces)

The first anniversary of the Ethereum London upgrade, what stories does EIP-1559 bring?

In the Ethereum destruction list counted by ultrasound.money, there are also DeFi protocols including SushiSwap, 1inch ,Aave , 0x, Paraswap ; Ethereum expansion networks including Polygon , Arbitrum , Optimism , Gnosis Protocol, zkSync ; and exchanges including Gemini, Kraken , KuCoin, Bitstamp, Coinbase , Binance . Also on the list are protocols such as Axie Infinity , Shiba Inu, Genie, Gem, Chainlink , DAI, Tornado Cash, ENS, LooksRare , dYdX , ApeCoin, Hop Protocol and more.

It is worth mentioning that due to the continued popularity of the NFT market in the second half of last year and the first half of this year, the amount of Ethereum destroyed by the OpenSea contract has long occupied the “number one” position. But in the near future, as the NFT market continues to cool down, the amount of destruction of Ethereum transfers surpassed OpenSea to take the first place.

In addition, according to data from ultrasound.money, in the past year, NFT-related contracts have destroyed 956,027 Ethereum, accounting for 37% of the total destroyed; DeFi-related contracts have destroyed 755,607 Ethereum, accounting for 29% of the total destroyed. %; in addition, MEV transactions destroyed 66,609 ETH, and Layer 2 related contracts destroyed 25,176 ETH.

The first anniversary of the Ethereum London upgrade, what stories does EIP-1559 bring?

other data

In this short year, EIP-1559 has brought many interesting data and stories.

Gas does not drop but rises after the upgrade?

Just after the London upgrade, which claims to be able to solve the problem of excessive gas, was completed, the increase in gas fees sparked community discussions. Ethereum developer trent.eth tweeted that there are 5 main reasons for this:

  • Service providers including exchanges disabled some functions (such as deposit and withdrawal) during the upgrade, resulting in a concentrated outbreak of demand after the upgrade was completed;
  • Some large-scale NFT airdrops are underway;
  • Some miners set the Gas Limit lower than 30 million, resulting in the actual gas usage rate of each block being less than 50%, aggravating the congestion on the chain;
  • Ethereum secondary market price fluctuations;
  • Users are sending transactions in large numbers to try out the new features brought by EIP-1559.

The result of the upgrade is not satisfactory

At the end of September of the same year, Bitfinex ‘s wallet made a transfer of 100,000 USDT with a gas fee of 7,676.62 Ethereum (worth over $20 million at the time) . According to the information on the chain, the transaction may have multiple parameter settings incorrectly, resulting in abnormal gas fees, but the transaction only destroyed about 0.0085ETH . At that time, the overseas community of Ethereum believed that the arrival of EIP-1559 would reduce such outrageous mistakes, but in fact it did not seem to be the case.

Miner income

Before the London upgrade began, some mining pools and miners opposed the upgrade because they were worried that the upgrade would reduce their own mining income, and even threatened to fork Ethereum, but in the end they were left behind due to their lack of power. On August 29, The Block reported that although Ethereum, which was BaseFee, was destroyed, the miners’ income in US dollars remained basically unchanged, on the one hand due to the rise in the price of Ethereum, and on the other hand due to the NFT market. The popularity of the industry led to tip income recovering some of the losses caused by EIP-1559.

According to The Block data, the total income of Ethereum miners basically maintained the level of 2021 until May this year, and it was not until the price of Ethereum fell sharply that there was a significant decline. This shows that in fact, the income of Ethereum miners has not dropped significantly due to the implementation of EIP-1559. At the same time, it also shows that although EIP-1559 theoretically reduces the possibility of “wasting money”, it does not really Reduce on-chain costs.

The first anniversary of the Ethereum London upgrade, what stories does EIP-1559 bring?

gas war

At the end of the month when the London upgrade was completed (August 28), the Adam Bomb Squad NFT released by clothing brand The Millions started the first “Gas War” since the Ethereum Gas policy update. About 1,908 ETH were destroyed within an hour of the NFT’s open sale, and Gas soared to 1,500GWei at one point.

The smoke of the first Gas war has not yet cleared. Three days later, the NFT project Fatales launched a Gas war again. The number of Ethereum destroyed in this snap-purchase is about 1080 pieces within 1 hour. Although the amount of destruction was not as good as in the first battle, Gas once soared to around 2000GWei.

The first anniversary of the Ethereum London upgrade, what stories does EIP-1559 bring?

In September of the same year, the third Gas War started. A project called sipherNFT also destroyed more than 1,000 Ethereum in 1 hour, and caused the gas fee to skyrocket to a maximum of 3,000GWei.

After the “Three Shots Surprise”, whenever a popular NFT project starts sales or minting, it will set off a bloody storm on Ethereum. And of these stories, the most amazing Gas War took place on May 1st of this year.

At 9:00 on May 1, 2022, Beijing time, Yuga Labs Metaverse project Otherside block NFT Otherdeed started minting. In just 1 hour, the minting contract destroyed more than 26,000 ETH, and the gas cost on the chain was once Soaring to nearly 10,000 GWei. 24 hours after the start of casting, the transaction volume of Otherdeed on OpenSea reached nearly 12,300 ETH, and the contract destroyed more than 42,000 ETH, breaking into the top ten list of Ethereum destruction in just one day . After the implementation of EIP-1559, the project set a number of gas-related historical records on May 1. The single-day gas destruction record mentioned above is also attributed to Otherdeed, and this record is likely to be difficult to achieve in a short period of time. Inside is broken.

Ethereum, which celebrated its 7th birthday last Saturday, has come out of doubt and exploded in last year’s bull market.With EVM becoming the “standard” for many new public chains , Ethereum has grown into an important benchmark in the Web3 industry. EIP-1559 in London’s upgrade has brought many wonderful stories, although it is impossible to list them all here, but this does not prevent the wheels of history from continuing to roll forward. After the upcoming merger, and Vitalik Buterin’s imagination after the merger, the future of Ethereum will definitely have more exciting stories for people to write.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-stories-did-eip-1559-bring-to-the-first-anniversary-of-the-ethereum-london-upgrade/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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