Journalist: Si Linwei
On the evening of August 5, at block height 12,965,000, Ethereum—one of the world's largest public blockchains—completed its highly anticipated "London" hard fork upgrade. This upgrade introduced five key proposals: EIP-1559, EIP-3198, EIP-3529, EIP-3541, and EIP-3554. Among these, EIP-1559, which reforms Ethereum’s gas fee structure, garnered the most attention. Post-upgrade, market expectations suggest Ethereum may enter a "deflationary" phase.
Key Highlights of the London Upgrade
- EIP-1559 Implementation: Transforms gas fee mechanics by burning a base fee per transaction, potentially reducing ETH supply.
- Exchange Support: Major platforms like Binance, Huobi, and OKX temporarily suspended ETH deposits/withdrawals but resumed services post-upgrade.
- Market Response: ETH price rose 3.66% to $2,800, while Bitcoin surpassed $40,000.
Why EIP-1559 Matters
EIP-1559 replaces Ethereum’s auction-style gas fee model with a two-tier system:
- Base Fee: Automatically burned, reducing ETH circulation.
- Priority Fee: Optional "tip" to incentivize faster transactions.
👉 Learn how EIP-1559 reshapes Ethereum’s economy
Impact on Miners and Users
- Miners: Short-term revenue decline expected as base fees are burned. Pre-upgrade, daily miner fees peaked at ~$11.67M.
- Users: Gas fees briefly spiked post-upgrade due to NFT airdrops and pent-up transaction demand but stabilized under 100 gwei.
Deflation Debate
While EIP-1559 reduces supply, Twitter user korpi notes:
"Ethereum won’t turn deflationary overnight—burned ETH must exceed new issuance from block rewards."
Industry Reactions
- Uniswap’s Hayden Adams: Estimated Uniswap alone could burn 350K ETH/year (~$1B).
- ConsenSys’ Joe Lubin: Highlighted $700B ETH locked in DeFi and $13B in Ethereum 2.0, signaling robust demand.
FAQs
1. What changes does EIP-1559 bring?
EIP-1559 introduces a base fee (burned) and optional priority fee, replacing the auction model to stabilize gas costs.
2. Will Ethereum become deflationary now?
Only if burned ETH exceeds new issuance—currently, block rewards outpace burns.
3. How did exchanges handle the upgrade?
Binance, Huobi, and OKX paused ETH transactions temporarily but resumed support post-upgrade.
👉 Discover Ethereum’s future roadmap
4. Why did gas fees spike after the upgrade?
Factors included NFT airdrops, pent-up demand, and miner gas limit adjustments reducing throughput.
5. Are miners protesting EIP-1559?
No new tokens emerged post-upgrade, indicating broad miner acceptance despite revenue impacts.
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