The newly proposed EIP-7999 by Ethereum co-founder Vitalik Buterin and developer Anders Elowsson aims to simplify how transaction fees are set on the Ethereum network.
One-Fee Future
Today, sending a transaction on Ethereum can mean juggling several types of fees tied to different resources like computation and storage. EIP-7999 proposes a single 'maximum fee' that covers all costs. Users would only need to enter one figure, simplifying the experience and making it more predictable for everyone.
Lower Costs After Dencun Upgrade
In March 2024, the Dencun upgrade bundled nine improvements focused on scalability and lower fees, particularly for layer 2s. According to Etherscan, within a year of the upgrade, the average gas fee for transactions fell 95%, from about $86 to just $0.39.
Impact on Ethereum Market
After the Dencun upgrade, Ethereum's fee revenue dynamics changed. In 2024, the total revenue reached $2.48 billion, up 3% from the previous year, while competitors also increased their fee revenues: Tron doubled its total to $2.15 billion, and Solana saw an increase of 2,840% to $750 million due to a surge in transactions.
The proposal EIP-7999 could significantly change how fees are set on Ethereum, but its full impact is yet to be discussed and evaluated.
