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Is EIP 1559 expected to meaningfully affect mining profitability, especially for miners who already own the hardware?
by tgsovlerkhgsel 5y ago
Is EIP 1559 expected to meaningfully affect mining profitability, especially for miners who already own the hardware?
- cinntaile 5y agoMining profitability hugely varies based on how much traffic there is on the ethereum network, since you have to pay higher fees to include your transaction in a block if there is a lot of demand. EIP 1559 changes the fee structure. It wants to burn the new basefee so miners don't profit from that, there is still a small tip part left though.
- elif 5y agoBasically, today fees make up ~40% of payout for miners. with EIP 1559, those fees will be reduced and also completely burned instead of given to miners. Instead, miners will receive "tips" from users trying to encourage faster block inclusion. No one knows how much "tips" will make up for the lost revenue, so it's kind of hard to mount a sizable resistance to the change, in the context of the obvious benefits it conveys to miners by making the currency healthier.