Ethereum founders Vitalik Buterin and developer Anders Elowsson have introduced the EIP-7999 initiative aimed at simplifying fee structures in the network.
Innovative Proposal in Fee Model
The new proposal allows users to set a single 'maximum fee' for all transactions, eliminating the need for separate fee calculations for each action. This aims to simplify the transaction process and minimize the risk of user errors. The unified system will provide a common fee structure for computing, storage, and data usage resources. The initiative draws inspiration from earlier developments like EIP-7706 and gas normalization research.
Fee Challenges and Past Developments
High and unpredictable fees on Ethereum have been an ongoing issue in recent years. During peak times, especially in 2017 and 2021, average fees exceeded 50 USD. The transition to a base fee system with the EIP-1559 update in 2021 did not fully control fee fluctuations during periods of high network activity. The Dencun upgrade, implemented in March 2024, significantly lowered transaction costs by enhancing scalability and integrating layer-2 solutions. These upgrades led to a 95% reduction in annual average transaction fees.
Community Insights and Future Steps
The EIP-7999 proposal is currently under discussion among community members and technical teams. If approved, it is expected to make Ethereum’s fees more user-friendly and efficient. Vitalik Buterin noted that this new fee structure could enhance user experience and capital efficiency, helping Ethereum stay ahead of its competitors.
The EIP-7999 proposal may mark a significant milestone in simplifying fee analysis and the transaction structure within the Ethereum network, potentially strengthening its competitive edge.
