EIP-1559

Ethereum Improvement Proposal 1559 (EIP-1559) is a proposed upgrade to the Ethereum network that aims to improve the network's transaction fee mechanism, which has been a source of frustration for users due to high fees and congestion during times of high network usage.

EIP-1559 introduces a new transaction pricing mechanism that is designed to automatically adjust transaction fees based on network demand, as well as a new mechanism for burning a portion of the transaction fees. This is intended to help stabilize the network and reduce transaction fees over time.

Under EIP-1559, transaction fees will be split into two parts: a base fee and a tip. The base fee is a minimum fee required to be included in a block, and it will be automatically adjusted based on the level of network demand. The tip is an optional fee paid by users to incentivize miners to include their transaction in a block more quickly.

In addition to the new transaction pricing mechanism, EIP-1559 introduces a mechanism for burning a portion of the base fee, which will help to reduce the overall supply of ether (ETH) and potentially increase its value over time. This burn mechanism is expected to lead to a more deflationary monetary policy for Ethereum, which could help to address concerns about inflation and increase the long-term value of ETH.