Vitalik Suggested Two ‘Multidimensional’ Ethereum Fee Structure Via New Proposal

By Emily Rys | January 10, 2022

Ethereum co-founder Vitalik Buterin has reportedly been investing his resources towards coming up with an enhancement for the existing fee structure for the network.

Specifically, he reportedly disclosed details of his proposal – goes by the name “Multidimensional EIP-1559” via a blog post on January 5th, where Buterin claimed that different resources in the Ethereum Virtual Machine (EVM) come with their specific demands regarding gas usage.

He additionally revealed that there are different limits for short-term “burst” capacity, in contrast to the “sustained” capacity within the EVM, mentioning instances related to block data storage, witness data storage as well as block state size changes.

“The scheme we have today, where all resources are combined together into a single multidimensional resource (‘gas’), does a poor job at handling these differences.”

The problem is that directing every different resource into a single one consequently results in “very sub-optimal gas costs” during occurrences of misaligning for these limits. 

Buterin reportedly went deep into his reasonably complicated proposed adjustments using an abundant amount of technical math, but simplifically speaking, the proposal offered two potential solutions using “multidimensional” pricing.

The first option would reportedly run calculations for the gas fee for resources, nominally call data and storage, via dividing the base fee for every unit of resource by the overall base fee. The base fee is a fixed-per-block network fee included in the Ethereum Improvement Proposal (EIP) 1559 algorithm.

The second – which comes with more complicated features – reportedly forms a base fee for using resources, but covers burst limits on each resource. A so-called “priority fees” will also be available, which are set as a percentage and calculated via multiplications of the percentage by the base fee.

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