What is Ethereum Improvement Proposal 1559?

First proposed by Vitalik Buterin in 2018, Ethereum Improvement Proposal 1559 ( EIP-1559) represents an overhaul of the fee market in Ethereum. The biggest change is the introduction of fee 'burning,' which has the effect of reducing Ethereum's inflation rate. From the perspective of a fee-paying user, EIP-1559 does not have a significant impact.

What is EIP 1559?

First proposed by Vitalik Buterin in 2018, Ethereum Improvement Proposal 1559 ( EIP-1559) represents an overhaul of the fee market in Ethereum. The biggest change is the introduction of fee 'burning,' which has the effect of reducing Ethereum's inflation rate.

What is the difference between eip-1559 and Ethereum 2.0?

EIP-1559 is small compared with ethereum 2.0 - an overhaul of the network's entire infrastructure that developers hope will be complete by early 2022. Ethereum 2.0 will see the network change from a "proof-of-work" system to a "proof-of-stake" system.

Will eip-1559 make ETH deflationary?

After EIP-1559 launches, the network will burn ETH, essentially working against the block rewards of 2 ETH per block. The question remains as to whether the fee burn will make ETH deflationary. According to a report by Coinmetrics, the expected rate of inflation is largely unpredictable.