On May 6th, the Olympia Upgrade was officially announced for Ethereum Classic. This is a significant step in the network's development aimed at improving compatibility and sustainable funding.
What is the Olympia Upgrade?
The Olympia Upgrade is a multi-faceted protocol improvement for the Ethereum Classic (ETC) network. Its aim is to align ETC more closely with the Ethereum Virtual Machine (EVM) ecosystem, simplifying development and project implementation. Key changes include the introduction of EIP-1559, the establishment of a treasury, and the launch of a DAO, allowing the community to participate in decentralized governance.
Features of EIP-1559 and Its Impact on ETC
The upgrade features the implementation of Ethereum Improvement Proposal 1559 (EIP-1559), fundamentally changing the transaction fee calculation in ETC. Instead of an auction-based model, users will now be able to calculate a base fee, which will be burned, as well as optionally add a priority fee. This will create a more predictable fee model and deflationary pressure on the supply of ETC, which may positively influence the long-term economics of the network.
Role of the Olympia Treasury and DAO
The Olympia Treasury is designed to create a sustainable funding mechanism for decentralized projects. It will provide a transparent and stable source of funding, allowing the community to directly control resource allocation. The launch of the DAO provides a platform for community members to participate in decision-making processes, including proposal submissions and voting, enhancing decentralization and network resilience.
The Olympia Upgrade marks a significant step forward for Ethereum Classic, ensuring sustainable development and decentralized governance. The success of this upgrade will depend on active community participation and effective management of the new structures.
