What does EIP-1559 mean for Incognito? Hopefully it lowers ETH and ERC20 token transfer fees (lowering gas). Does this have any other implications for Incognito that need to be considered or plan for?
FYI @andrey, this is what I was mentioning on the call today.
Might help us if gas fees stay high, but in general I think this it not what should be important for the success of our project. Fees will come down in the long term for sure in order to create sustainable defi eco-system. Thus I think we should keep focusing on privacy mission only
Eip1559 will not reduce gas fees, it will just stabilize them (in theory). The only logical way to reduce fees on our smart contract interactions is to introduce gas tokens which is a quick add.
The code is there (50 percent fee reduction in gas)
Not sure, I could imagine it will bring the fees down as well. But in the end, we just will have to wait and find out.
If anyone is interested in doing a deep dive on EIP1559 I’d highly recommend the (50+ page) analysis by Prof. Roughgarden:
There’s also a more digestible breakdown of the paper by Tim Beiko here:
If you look at his recent posts on Twitter you will also find a general FAQ about EIP1559:
And a google doc for calculating impact on miner revenue: