Ethereum's new fee model is not appreciated by many miners

Ethereum's new fee model is not appreciated by many miners - ethereum feesEthereum miners have expressed some disapproval of a technical proposal backed by top Ethereum developers that would change the mining rewards protocol, according to a new survey.

the new proposal for Ethereum miners

Eight of nine mining projects that participated in a community survey on the Ethereum Improvement Proposal (EIP) 1559 showed a negative reaction to the proposal, with seven out of nine saying they would refuse to implement EIP if it were included in a future hard fork.

EIP 1559 exchanges the current Ethereum offer-based transaction market for a fixed fee, BASEFEE, with a small tip intended for the miner. The EIP gained momentum during the summer months as the cost to send even a basic transaction has exceeded $ 10 several times. The survey included 25 Ethereum projects, most of which chose to remain anonymous, said Tim Beiko, product manager at ConsenSys and one of the survey creators.

The survey lacked the participation of exchanges or wallets, according to Beiko. Overall, the positive and negative responses both garnered 42% of the votes, while the rest are neutral or take no position. First proposed in 2018 by Vitalik Buterin, among others, EIP 1559 is expected to make the blockchain fee market more predictable and alleviate congestion.

What EIP 1559 does not do is promise lower transaction fees. Miners would continue to reap profits with the new model but would be limited compared to the current setup as the BASEFEE would be removed from the network. This would add a deflationary mechanism to the native currency of the Ethereum network, ether (quotation ETH).

Miners have a lot to lose

However, Ethereum miners have a lot to lose from the new standard proposal because the transaction fees would be limited to a smaller range. Being a miner has never been more profitable, with earnings reaching all-time highs throughout 2020, according to BitInfoCharts.

“It was a very misleading EIP, and the majority of supporters are some Twitter (sic) opinion leaders who believe they are making a profit. Lol, ”said BitFly writer Butta. BitFly's Ethermine is the second largest Ethereum mining pool by number of hashrates, according to Etherscan. Conversely, Ethereum's largest mining pool, Sparkpool, is in favor of the change, it said in June.

Post Berlin Hard Fork

Ethereum developers are still protesting against EIP. They won't include it until after the Berlin hard fork, which has yet to be scheduled to run after being postponed to June.

While miners are concerned about their wallets, decentralized applications (dapps) are concerned about the implementation of EIP, its effectiveness, and changes to developer tools.

Some Ethereum clients like Nethermind and Besu have started implementing EIP on testnet. But other clients, including Geth and OpenEthereum, are waiting for a finalized specification before releasing the EIP on testnet.