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Expert disputes the role of EIP-1559 in Ethereum's 'Ultrasound Money'

Expert disputes the role of EIP-1559 in Ethereum's 'Ultrasound Money'

GrafaGrafa2024/09/04 07:05
By:Mahathir Bayena

Mark Odayan, head of research at 2077 Research, has challenged the belief that Ethereum's (CRYPTO:ETH) EIP-1559 is a cornerstone of the “Ultrasound Money” concept. 

In his recent analysis, Odayan argues that the transaction fee mechanism introduced by EIP-1559 has been misunderstood and misrepresented in popular narratives. 

The Ethereum Improvement Proposal (EIP-1559) altered how transaction fees are calculated, introducing a base fee that is burned with each transaction. 

This update was primarily designed to make gas fees more predictable and reduce congestion on the network. 

Odayan argues that this update should not be seen as a core driver of Ethereum's deflationary policy or as the foundation for the “Ultrasound Money” narrative. 

He points out that while burning Ethereum's base fees contributes to a deflationary effect, this was not the primary aim of the proposal. 

Instead, EIP-1559 was intended to stabilise gas fees and improve user experience. 

Odayan’s analysis suggests that the meme of “Ultrasound Money” has led to a skewed perception of EIP-1559’s role within Ethereum's economic landscape. 

He cautions that focusing too much on this narrative can detract from more pressing issues that Ethereum needs to address, such as network scalability, security, and technological advancements. 

The report from 2077 Research seeks to correct these misunderstandings and encourage the Ethereum community to adopt a more comprehensive view of the network’s development. 

By challenging the association between EIP-1559 and “Ultrasound Money,” Odayan hopes to redirect attention to Ethereum's overall roadmap, which includes a range of essential improvements and upgrades. 

According to Odayan, this reevaluation is crucial for understanding Ethereum's true potential and economic future.

At the time of writing, the Ethereum (ETH) price was $2,378.51.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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