EIP-1559 has excited people because it will destroy or "burn" ether - the cryptocurrency of the network.
Miners do not receive the base fee; otherwise, they could artificially congest the network to keep the fee high. It's destroyed instead.
Some investors believe the fact that the supply of ether will be limited by burning could cause explosive price growth.
But the influence on price is far from certain, developers say. It also depends on things like transaction volumes, which determine how big gas fees are and so how much ether is destroyed.
"Until it's deployed, we don't know exactly what the effect will be in terms of ether burned," Ben Edgington, an ethereum developer at ConsenSys, said.
Reducing supply is beneficial for the price provided there is sufficient demand. The actions being taken to reduce uncertainty about transaction fees are a small step towards building confidence in the network.Click HERE to subscribe to Fuller Treacy Money Back to top