Thread by @RyanBerckmans

1/ EIP-1559 is huge for ethereum

But, miners are upset that EIP-1559 reduces their revenue by ~50%. Who wouldn't be?

imo, miners will accept that launching EIP-1559 as specced and on time is their best option

Here are five reasons why👇

(Reason #2, ETH pays miners 5x vs. BTC)

2/ Reason #1

Ethereum paid block rewards to miners for years when fees were negligible. If fees dry up for any reason, we'll still pay block rewards. We've also always paid miners 100% of our revenue (fees). EIP-1559 reduces this to ~20% of revenue. imo, it's reasonable.

3/ Reason #2

Last week, ethereum paid miners 5x more than bitcoin after normalizing by market cap. If EIP-1559 had been live, ethereum would have paid miners 2.5x more than bitcoin.

4/ Reason #3

Ethereum's fees grew 150x over the past fifteen months. I think fees might grow another 2x to 10x over the next two years. Miners may expect the pay cut to be effectively temporary due to fee growth, even if the price of ETH doesn't change (but it will🚀)

5/ Note that fees paid by individual ethereum users are likely to be ~100x cheaper later this year. This is because ethereum is scaling this year via generalized L2s, like Arbitrum and Optimism, and specialized L2s, like Loopring and Immutable X.

6/ Reason #4

EIP-1559 delivers important benefits for ethereum. That's good for ETH. And good for miners because they get paid in ETH.

See "Why EIP-1559?" hackmd.io/@timbeiko/why-…

7/ Reason #5

EIP-1559 helps ethereum scale this year

https://twitter.com/RyanBerckmans/status/1363638577284923393

8/ In two days, there's an EIP-1559 community call to connect with miners