Filecoin testing paves way for Ethereum tariff restructuring

A long-awaited Ethereum Improvement Proposal (EIP) is currently being tested on Filecoin’s network to cope with the high rates of the network.

A proposal to change the Ethereum fee structure has been in the pipeline since it was first suggested in April 2019. The increase in network fees in recent months has again highlighted EIP 1559, and is being tested on the Filecoin digital storage platform.

The Ethereum whale’s uniswap token briefly reached $100,000, but there is a catch

Ethereum co-founder Vitalik Buterin sent an update via Twitter as more information and research pile up in the proposed update.

Filecoin software engineer Jeromy Johnson said the EIP code „seems to be doing its job“ in an ongoing test on the network. He added that there have been a couple of spikes in the „quota base,“ which is the new network fee architecture, but that there was very little delay in the messages that came into the chain.

Filecoin is a decentralized storage platform that is being tested. It has set a goal of launching the main network in September, according to its August progress update. Sharing the technology with Ethereum makes it a good testbed for EIP 1559.

Rushed upgrade made 12% of Ethereum’s customers unusable

On August 22nd, PegaSys developer Tim Beiko tweeted that two Iq Option clients are currently testing the code privately, the Vulcanize and Besu geth fork. He added that he would personally like to see EIP 1559 implemented on a large state network, like Ropsten, to see if larger blocks are a problem.

A solution to high gas rates?
The proposal introduces the „base tariff“ mechanism that dynamically adjusts tariffs based on current levels of network congestion. Currently, Ethereum’s network tariffs are calculated in an auction system in which users „bid“ how much they are willing to pay for their transaction to be collected by a miner. Naturally, the miners give priority to the highest bids first, which leads to congestion and high gas prices under heavy load.

Ethereum price remains in key resistance days before the expiration of $112 million in options

Under the new proposal, if the blockchain is used more than 50%, the basic rate increases automatically, but if it is used less than 50%, it will decrease. Ethereum users could still „jump the queue“ by paying a „tip“ in addition to the basic rate. All ETH fees paid through the base rate are burned and only the „tip“ is paid to the miners.

The maximum difference in base rate from one block to another would be predictable because these increases are limited. This would allow wallets and dApps to automatically set gas rates for users more reliably rather than simply estimating them.

However, it may take some time before EIP 1559 is deployed on the Ethereum’s main network. ETHhub founder Anthony Sassano predicted at least 6-12 months in his August 24th Daily Gwei newsletter.