The consequences of EIP-1559 for Coinbase
Coinbase detailed the benefits of EIP-1559 in a recent blog post. As a reminder, the Ethereum update made it possible to review transaction fees, so that they are more predictable. It also introduced token burns, in order to get rid of part of the supply.
The upshot is that Coinbase now saves an average of 27 ETH per day. At the current price, this corresponds to $ 97,300. This is a reduction of 9% from the daily fee that was charged before the EIP-1559. Also, the confirmation time has been reduced by 11 seconds, the equivalent of 0.7 blocks.
According to the article, this improvement was possible because the charges applied are higher than the “base fees”:
“We believe that we can both save on gas cost and improve confirmation time as we specify a max_fee_per_gas which is considerably higher than the current base_fee_per_gas. “
Coinbase is logically participating in the great ETH inferno, part of which is now burnt. As of September 27, the exchange has burned 13,800 ETH, which equates to 245 ETH per day.
This is, however, a drop in the bucket compared to the total ETHs that have been burned since the update: 463,592 in total. This is the equivalent of $ 1.65 billion.
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About the author: Marine Debelloir
Associate Editor on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that arise from the blockchain and I like to find the most delicious information to share with you.
All articles by Marine Debelloir.