- According to the proposal, users may improve capital efficiency and the user experience while simplifying fee administration.
- If approved, the proposal will make it easier and more predictable to pay for transactions by removing the need to estimate.
Vitalik Buterin, co-founder of Ethereum, and Anders Elowsson, developer, have proposed EIP-7999 to simplify the fee structure for Ethereum transactions. The proposal, which was released on Tuesday, aims to create a cohesive multidimensional fee market where users may choose a single maximum fee for all resources.
If approved, the proposal will make it easier and more predictable to pay for transactions by removing the need to estimate and maintain several cost components when completing transactions and instead allowing users to choose a single, all-encompassing maximum charge.
According to the proposal, users may improve capital efficiency and the user experience while simplifying fee administration by specifying a single max cost across numerous transaction resources. It is now being discussed and reviewed by the community in preparation for possible implementation.
Severe Ongoing Problem
Since the network’s explosive expansion in 2017, when a deluge of DApps and ICOs caused congestion to spike and transaction fees to skyrocket, gas fees on Ethereum have been an ongoing problem. During the NFT boom and summer of 2021, the situation became even more dire as average gas prices often surpassed $50 per transaction.
A base fee burn and an effort to normalize costs were added via the EIP-1559 update that Ethereum launched in August 2021 in response. Gas prices were remained unpredictable and sometimes unaffordable during times of heavy congestion, even though it helped to mitigate charge surges.
Optimism and Arbitrum, two prominent layer 2 scaling solutions, processed transactions offchain to reduce fees, thereby alleviating the pressure. On the other hand, Ethereum’s mainnet costs continued to be an issue, which led to continuous development until the Dencun upgrade in March 2024.
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