Mark Odayan, head of research at 2077 Research, asserts that Ethereum’s EIP-1559 should not be equated with the concept of “Ultrasound Money.” Odayan’s insights aim to clarify the transaction fee mechanism introduced by EIP-1559 and address widespread misunderstandings.
Ethereum’s EIP-1559: Mark Odayan Calls for Rethinking ‘Ultrasound Money’ Links
In a detailed analysis by 2077 Research, Mark Odayan emphasizes that Ethereum’s EIP-1559, a pivotal update to the network’s transaction fee mechanism, is often misunderstood. According to Odayan, misconceptions fueled by popular memes have overshadowed the actual design objectives of EIP-1559. The update, which adjusts how transaction fees are calculated and introduces a base fee burned with each transaction, was designed to improve fee predictability, not to serve as a foundational pillar for the “Ultrasound Money” narrative.
The ‘Ultrasound Money’ meme.
Odayan’s research indicates that while EIP-1559 does contribute to ether’s deflationary characteristics, it should not be seen as the primary driver of Ethereum’s economic policy. Instead, the motivation behind EIP-1559 was rooted in the need to enhance user experience by stabilizing gas fees and mitigating congestion on the network. The burning of Ethereum‘s base fees, though significant, is a byproduct of these goals rather than a strategy for reducing ether supply.
The analysis further highlights that the popular association of EIP-1559 with “Ultrasound Money” has led to a skewed perception of its purpose. Odayan points out that this narrative can hinder progress by diverting attention from the actual challenges that Ethereum faces. As the head of research at 2077 Research, Odayan urges the community to focus on the broader context of Ethereum’s monetary policy and its underlying technological advancements rather than fixating on EIP-1559 as a singular solution.
Ultimately, Odayan’s report aims to correct these misunderstandings and refocus the discussion on Ethereum’s comprehensive roadmap. By dispelling myths surrounding EIP-1559, the editorial from 2077 Research encourages a more nuanced understanding of Ethereum’s development and its long-term goals.
What do you think about the 2077 Research report on Ethereum’s EIP-1559? Share your thoughts and opinions about this subject in the comments section below.
