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arXiv · 2105.03521

Stochastic Properties of EIP-1559 Basefees

Ian C. Moore·Jagdeep Sidhu
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Abstract

EIP-1559 is a new proposed pricing mechanism for the Ethereum protocol developed to bring stability to fluctuating gas prices. To properly understand this as a stochastic process, it is necessary to develop the mathematical foundations to understand under what conditions the base fee gas price outcomes behave as a stationary process, and when it does not. Understanding these mathematical fundamentals is critical to properly engineering a stable system.

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Ian C. Moore, Jagdeep Sidhu. 2021-05-07. Stochastic Properties of EIP-1559 Basefees. https://arxiv.org/abs/2105.03521

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