2.2 EIP 1559
EIP-1559 aims to reduce the inflation of the Ethereum ecosystem. Inflation has incentivized users to make transactions and create volume on chain for over 5 years. Issuance per block started at 5 Ether, was reduced to 3, and then further reduced to 2 for the current rate. This gradual decrease has made the supply of Ethereum disinflationary (similar to bitcoin) as the supply is still increasing, but slower than it previously was. EIP-1559 aims to further this disinflationary system and potentially even make it deflationary. Currently, all fees that are used in a transaction are paid to miners to validate the block. This will change in mid July as the fee structure is updated.
Learning Objectives
    What is the goal of EIP-1559?
    What are some predictions for how much Eth will be burnt?
    Discuss the differences between Eth’s revised monetary policy vs bitcoin
    Know the difference between the base fee and “tip”
Reading List
Key Points
    Miners vs Holders
      Miners want to extract as much value from the system and need USD to pay for equipment costs
      Holders simply want the price to go up and want cheap transactions
    EIP 1559
      London Hard Fork
      Burns transaction fees instead of paying them out to the miners
Review Questions
    What is Ethereum’s current volume per day and how much eth would be burned based on it?
    What determines which transaction is ordered first in a block?
    What will Ethereum’s maximum supply be?
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