EIP-1559
EIP-1559 redesigned Ethereum's fee market by introducing a dynamically adjusting base fee that is burned and a separate priority fee (tip) that goes to validato #Ethereum #ETH #VirtualEthereumIndex
EIP-1559 redesigned Ethereum’s fee market by introducing a dynamically adjusting base fee that is burned and a separate priority fee (tip) that goes to validators. Instead of a pure first-price auction, the base fee changes automatically with block demand, improving fee predictability and reducing common overpayment patterns. The burn mechanism ties network usage to ETH supply dynamics: when demand is high, more ETH can be burned, potentially offsetting issuance. EIP-1559 is frequently cited in discussions about Ethereum monetary policy, “ultrasound money” narratives, and fundamental analysis for institutional adoption. For mainstream users, EIP-1559 is mostly felt as a smoother wallet experience when estimating fees, plus an easy-to-track “ETH burned” metric that reflects real on-chain activity across DeFi, NFTs, and stablecoin transfers. #Ethereum #VEI #VirtualEthereumIndex. Reference: vei.xyz/ethereum-glossary