What is EIP-1559?
EIP-1559 was raised by Vitalik in 2019, standing for “Ethereum Improvement Proposal” , which aims to improve the efficiency of the fee market mechanism of Ethereum. It makes the gas fee more predictable and transparent, handles surges more efficiently, and reduces latency in transaction confirmations, thereby capturing greater Ethereum value.
EIP-1559 mainly changes the fee market mechanism of Ethereum, that is, the First-price Auction conducted by users was modified to the combination of Base Fee and Priority Fee.
The Base Fee automatically adjusts the Gas Price which is required for on-chain operations based on the space utilization of the previous block to cope with transient network congestion. Unlike the original miner fee mechanism, the Base Fee for EIP-1559 will be completely burned rather than given to miners.
Here is the formula for the dynamic adjustment of the Base Fee:
If the previous block space utilization is 100% , which means the network is highly congested, then the current block BaseFee will automatically increase by 12.5%;
If the previous block space utilization is 0%, the current block Base Fee is automatically reduced by 12.5%.
Priority Fee, a new type of transaction added by EIP-1559, is used to motivate miners to package the transaction during periods of high congestion.
In addition, in order to protect the rights and benefits of users, to complete the upper limit of the tip that the user set and to improve the efficiency of winding, the EIP-1559 also allows users to set the Max Fee that is the maximum price you pay for each unit of gas and the Max Priority Fee that is the maximum tip you pay for each unit of gas.
According to the formula, Max Fee = Base Fee + Max Priority Fee, Max Fee and Max Priority Fee both support user-setting, and Base Fee is automatically given by the algorithm. If the miner fee (Base Fee + Tip) exceeds the Max Price, the exceeded fee will be refunded to the user.
Since the Base Fee is to be burned, only Priority Fees are charged by miners in EIP-1559.
At present, O3 cross-chain wallet has supported EIP-1559, you can follow the following tutorials to view and set reasonable miner fees.
How to set Gas Fee in O3 cross-chain wallet?
O3 cross-chain wallet currently supports two Gas fee settings for Ethereum networks, one legacy and one EIP-1559.
Legacy： Gas Fee = Gas Price * Gas
Gas settings under Legacy can be viewed in this article:
EIP-1559： Gas Fee=（BaseFee + MaxPriorityFee）*Gas
Open the O3 cross-chain wallet and go to [Me]-->[General Settings] to enable the EIP-1559 fee mode, and the original miner mode is no longer supported.
In the EIP-1559 fee mode, gas fees display a fee range in which the actual miner fee will be incurred.
Click on the Gas Fee to enter the settings page of Gas Fee, we support both [Standard] and [Customize] settings.
Standard： The O3 cross-chain wallet offers three Gas Fee options: "Fast", "Best", and "Slow". You can choose one according to your transfer needs.
Customize： To change the Gas Fee, click [Customize] to set the parameters of Max Priority Fee, Max Fee, and Gas Limit.
Gas limit is the maximum amount of gas units that the transaction may be able to consume, which is usually fixed at 21000, if you want to modify it yourself, it is not recommended to be lower than 21000.
In addition, make sure that the Max Fee ≥ Base Fee + Max Priority Fee when setting, if the Base Fee + Max Priority Fee exceeds the Max Fee, the higher tip will be refunded to the users. You can wait for the transaction to complete or go to the transaction history of an Ethereum block explorer such as Etherscan to view "effectiveGasPrice".
Can I not pay the Priority Fee?
Yes. But the Priority Fee is used to motivate miners to package the transaction, thus it will take you a long time to complete the transaction or may not be completed. And the Priority Fee you paid will not be refunded once you do not pay or the Max Priority Fee paid is not enough to be on the chain.
Last updated
