It has already been decided that EIP-1559 will be going live in July 2021. Few of the analysts think that this might surge the Ethereum price however several of the miners do not seem to be happy about this forthcoming event.
The Ethereum upgrade will be reducing the volatility present in the transaction fees. This upgrade is set to take place this July for the purpose of another crucial hard fork.
Ethereum Upgrade Will Witness Major Shifts
This Ethereum upgrade EIP-1559 represents the ETH Improvement Proposal that will go up live in the ETH hard fork of London in July. This proposal will be bringing down the volatility that exists in the transaction fees through the burning of the fees that are paid via ETH rather than paying the miners.
Even though the miners will be losing their money, experts think that this ETH upgrade might be able to boost the ETH price as well as make it cost-effective for general use.
EIP-1559 will repair the manner in which the users will have to pay the transaction fees of ETH. At present, the fees are paid to the miners for the transaction procedures. The cost of these fees will rely on the miner’s supplies as well as the users’ demands. In case there is a blockage on the network, these miners are allowed to charge spiked rates of more than $20 for each transaction.
EIP-1559 will replace this skewed supply-demand system presently implemented with a uniform rate throughout the network. The BASEFEE might increase at the peak market hours and decrease at other times.
The 3 biggest ETH miners are upset and declared a strike against this upgrade. Although the company has assured that this is a positive measure.