Change, it seems, is inevitable. And so is compromise.

  • Aims to make gas prices more predictable and stable.
  • Replaces how gas prices are calculated from an auction-style to an algorithmically set gas price.
  • Introduces a burn rate to Ethereum base fees to improve stability.
  • Introduces greater block size variance, so blocks can expand up to twice the current maximum limit during times of network congestion.
  • Miner transaction fees have been reduced, meaning there will be more reliance on block rewards and ‘maximal extractable value’ (MEV) for rewards.
  • This previously led to front-running on trades across decentralized exchanges and resulted in extortionate gas fees as traders attempted to put such a large fee on that miner’s accepted it before bots were able to front-run the trade.
  • Freezes the block reward by delaying the ‘difficulty bomb’, known as the ‘Ice Age’.
  • Lays the groundwork for the move from Proof-of-Work to Proof-of-Stake model.
  • Intended to disincentivize miners once the switch to Ethereum 2.0 and PoS is complete.
  • This is the fourth time the difficulty bomb has been delayed.
  • The new date for the start of the difficulty bomb is the 1st of December, suggesting a merge with Ethereum 2.0 may come at the end of the year.
  • Likely to be delayed again in further preparation to move to PoS
  • Reduces gas refunds for developers reducing/deleting unused smart contracts and addresses
  • The system got gamed by various ‘gas coins’ which took up space during periods of low gas fees and ‘sold’ them by deleting the contracts during times of high gas fees.
  • These tokens will become obsolete in EIP 3529.
  • Developer usability upgrade
  • Makes it easier for developers to call, and use any block’s base fee for decentralized application estimations
  • Groundwork from future improvements for the Ethereum Virtual Machine
  • Removes the ability to start contracts with 0xEF or Executable Format.
  • No effect at the moment but will eventually restrict the EVM from consuming specific data types

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