Glossary - ChicksX

EIP-1559 is a protocol upgrade to Ethereum, improving transaction fee mechanisms and introducing a base fee.

EIP-1559 is an Ethereum Improvement Proposal that restructures the transaction fee model. It introduces a base fee that dynamically adjusts based on network demand. This makes fees more predictable for users. Additionally, EIP-1559 includes a mechanism to burn a portion of the transaction fees. This reduces the overall supply of Ether. It aims to enhance user experience and improve network efficiency. It also addresses issues such as fee volatility and miner revenue predictability. Overall, it represents a significant change in Ethereum's economic model.