Vitalik Buterin Proposes a New Ethereum Fee Structure
Vitalik Butering has proposed a new fee structure for the Ethereum network, dubbed “multidimensional EIP-1559,” in reference to the recently deployed EIP-1559 update.
Behind the technical jargon, the calculations and formulae provide straightforward proposals that might really alter the way Ethereum’s fees work: various quantities of gas will be utilised for different network actions.
Today, Ethereum employs a method in which the same amount of gas is utilised for various network functions. For example, although ordinary transaction and call data use just 3% of gas every block, a “worst-case” block has 67x the data.
Utilizing a single resource for both worst-case and best-case situations is inefficient. Simply said, users of the Ethereum network pay more for network operations when they might pay less.
The new price structure will ensure that gas is utilised efficiently, helping users to pay less for different sorts of activities like minting, transactions, and call data.
Buterin proposed two methods for implementing the new fee structure on the network: the gas execution cost should stay constant, while the running expenses should be proportional to the kind of resource consumed divided by the base price.
According to Vitalik, the second, “purer” approach needs the adoption of a set base price and infinite block gas. Priority fees are calculated by multiplying base rates by a percentage. Along with a more adequate pricing structure, the change will strengthen the network’s security.