"Escalator Algorithm" aims to improve the charging model in Ethereum

2022-06-23 区块链达人

The “Escalator Algorithm” by developer Dan Finlay aims to improve the charging model in Ethereum (ETH) by a more dynamic mechanism.

Fees on the Ethereum network have quadrupled since April and network congestion has made the situation worse.

Developer Griffin Ichiba Hotchkiss has described the improvements that can be made to the current fee model of Ethereum. The developer describes the current fee model as “costly and inefficient”.

In his publication, Ichiba discussed the EIP-1559 and its counter-proposal, a new mechanism called “Escalator Algorithm”. As reported by CNF, EIP-1559 is intended to replace the Ethereum “first price auction” model. This model works by paying a fee that encourages miners to validate a transaction, the higher the fee the faster it is validated.

On the contrary, EIP-1559 would change the model to implement a base rate parameter that will be charged by the protocol. According to the proposal, with each completed transaction the fees will be divided. One part of the fee will go to the miner who will receive a sort of “tip” and the other part will be the “space fee” which will be burned. By removing the incentives to manipulate tariffs, the model would be much more predictable, explained Ichiba.

However, the proposal has yet to be approved. Ichiba said that EIP.1559 could cause problems, especially with “any software that builds and sends (automatically) Ethereum transactions for its users”. Ichiba noted that this applies to wallets that would have to make changes to adjust to the new model. Therefore, the counter proposal of the developer Dan Finlay arose which, as mentioned, is called “Escalator Algorithm”.

Author : Reynaldo