What is the impact of Ethereum eip-1559 proposal on the market?

Recently, eip-1559 began to swipe the screen again in the currency circle, and the major mines have expressed their positions one after another. A new round of disputes seems to start again.

The core of eip-1559 is to change the way gas fees are paid to miners.At present, the main way for miners to package is to choose the transaction with higher bid price (i.e. higher gas cost) in MemPool (transaction memory pool).

In the eip-1559 proposal, the gas fee will be divided into two parts: base fee and tip.The base fee is the lowest price a user must pay to package his or her transactions into blocks.If the eip-1559 proposal is passed, the base fee will be destroyed.If the gas cost in the block exceeds the limit of 12.5m, the block will increase the limit, and the final upper limit of gas cost is 25m.Tips can be considered as an additional reward for miners. Once the gas cost reaches the final upper limit of 25m, miners can sort and pack according to the tip, similar to the current first price package.

In short, for programs and users, eip-1559 makes gas costs predictable, and can accurately estimate gas costs by observing the basic fees of the blocks being packaged, rather than being packaged at a price higher than the current average gas cost, and reducing the number of additional eth issues and even realizing deflation.

At present, the biggest group against eip-1559 is Ethereum miners.There is some reason for miners to oppose eip-1559, because the cost of destroying the foundation will reduce their income, which is expected to decrease by about 30%.
As a result, many mines are openly opposed to eip-1559, the most obvious of which are spark and ethermine.

From the perspective of money quantity theory, deflation will lead to the increase of money purchasing power, which is true.The problem is that how to achieve deflation is not a trivial issue.Like the eip-1559 proposal, the rate of deflation is not fixed. that is to say, the issuance rate of eth itself will become unstable. this instability will bring great hindrance to the operation of the money market, just as the unexpected inflation affects the money market, resulting in excessive investment and insufficient savings, the unexpected deflation is the opposite effect.In other words, a good monetary policy should be that the SEO rate is as stable as possible.

The conflict between the community and miners reminds people of bifurcation. However, from the Dao bifurcation event in the early years of Ethereum and the follow-up development of etc, we can see who is the indispensable soul of Ethereum - the core development group and ecological developers rather than the miners.If the core development group wants to implement it, miners can not stop it.The current high fees of miners also come from the active and successful development community of defi.

Miners still ensured the safe operation of Ethereum when there was no ecological construction in the early stage.Miners played a key role in ensuring the safety of early Ethereum and subsequently attracting developers into its ecosystem.

Now, Ethereum has thousands of applications and a large number of builders.Now, status has shifted, and builders and users are driving the value of ether and consolidating its leading position in the world of decentralized applications.

And V God has also made it clear that the greater significance of eip-1559 is that almost every transaction can be confirmed in 1-2 blocks. If some miners leave, new ones can come. If 51% of miners attack, Ethereum's ecology will be moved to POS as soon as possible.The weight of different camps in the ecology of Ethereum and the public support of V God have indicated that the eip-1559 proposal has been settled, and the subsequent changes are more likely to compromise the income of miners to a certain extent. After reducing the handling costs, the DFI ecology of Ethereum will further flourish.