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Podcast: Epicenter - Learn about Crypto, Blockchain, Ethereum, Bitcoin and Distributed Technologies
Episode: Tim Roughgarden: EIP-1559 – Tackling the Gas Fee Problem on Ethereum
Description: Ethereum Improvement Proposal (EIP)-1559 is a proposal to make several tightly coupled additions to Ethereum’s transaction fee mechanism. Central to the design is a base fee, which plays the role of a reserve price and is meant to match supply and demand. Every transaction included in a block must pay that block’s base fee (per unit of gas), and this payment is burnt rather than transferred to the block’s miner. The base fee is adjusted after every block, with larger-than-target blocks increasing it and smaller-than-target blocks decreasing it.Tim Roughgarden is a Professor of Com...