Transaction Fee Mechanism Design for the Ethereum Blockchain: An Economic Analysis of EIP-1559

Abstract

EIP-1559 is a proposal to make several tightly coupled additions to Ethereum's transaction fee mechanism, including variable-size blocks and a burned base fee that rises and falls with demand. This report assesses the game-theoretic strengths and weaknesses of the proposal and explores some alternative designs.

References in corpus (2)

• Flash Boys 2.0: Frontrunning, Transaction Reordering, and Consensus Instability in Decentralized Exchanges
• Double-Spend Counterattacks: Threat of Retaliation in Proof-of-Work Systems

Cited by in corpus (2)

• Dynamic Posted-Price Mechanisms for the Blockchain Transaction Fee Market
• Stochastic Properties of EIP-1559 Basefees