The pool believes that EIP-1559 will contribute to improving the user experience. Other Ether mining pools reject it because it could reduce their income.
In recent weeks, cryptocurrency mining group F2pool announced its support for Ethereum’s EIP-1559 proposal. They said that it would serve to adjust the incentive payments to miners. The pool explains the reasons that led them to support the initiative.
EIP-1559 suggests two ways to adjust the fees that traders must pay for the transactions that they conduct. In other words, the gas would have a base fee and a tip. The first would consist of the minimum price that users must pay to include their transactions in the next blocks.
The miners would not receive the amount directly, but it would burn to keep the rates low and stable. They would receive a tip instead, which would theoretically allow them to classify the transactions to conduct. However, the method could create a “bidding war” with tips, just like with fees.
In recent days, F2pool highlighted that the activation of EIP-1559 would significantly improve the user experience. According to the document that “JK” signed, the proposal will help to make a more predictable fee estimate.
Arguments to Support Ethereum’s EIP-1559
They mainly argue that the current Ethereum ecosystem is not the same as it was in its early days. Now there are thousands of apps and developers, which shows the value that the network has gained. That is something that has benefited miners, according to F2pool.
“Block rewards have fallen from 30,000 ETH per day in 2016 to 13,000 ETH per day today. However, miners’ block incentive income has increased from USD 300,000 a day to USD 23.4 million a day,” the statement said.
F2pool believes that Ethereum users and apps require the network to enable EIP-1559 to improve. High fees due to network congestion could be hampering the potential scalability of the project.
The group explained that EIP-1559 is necessary “due to market expectations.” They believe that the current price of Ether (ETH) should have already absorbed the improvement.
Miners Reject the Proposal
On other occasions, miners have rejected the activation of this proposal because it will make them obtain less income. That would carry the potential risk of disconnecting their equipment. Eight of nine mining projects surveyed last year disagreed with the proposal.
The miners fear that “conspiracies” will arise to keep the base rate higher or lower. The groups also doubt whether the reduced incentives could lead to the appearance of more ASIC equipment on the network. They also do not know how they could incentivize users to give higher tips.
Regardless of these perspectives, F2pool said that “the only negative arguments center on the miners’ loss of income in the short term.” The situation could become complicated in the Ethereum community as the activation of EIP-1559 should occur in July, along with the London hard fork.
By Willmen Blanco