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arXiv · 2201.05574

Empirical Analysis of EIP-1559: Transaction Fees, Waiting Time, and Consensus Security

Yulin Liu·Yuxuan Lu·Kartik Nayak·Fan Zhang·Luyao Zhang·Yinhong Zhao
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Abstract

A transaction fee mechanism (TFM) is an essential component of a blockchain protocol. However, a systematic evaluation of the real-world impact of TFMs is still absent. Using rich data from the Ethereum blockchain, the mempool, and exchanges, we study the effect of EIP-1559, one of the earliest-deployed TFMs that depart from the traditional first-price auction paradigm. We conduct a rigorous and comprehensive empirical study to examine its causal effect on blockchain transaction fee dynamics, transaction waiting times, and consensus security. Our results show that EIP-1559 improves the user experience by mitigating intrablock differences in the gas price paid and reducing users' waiting times. However, EIP-1559 has only a small effect on gas fee levels and consensus security. In addition, we find that when Ether's price is more volatile, the waiting time is significantly higher. We also verify that a larger block size increases the presence of siblings. These findings suggest new directions for improving TFMs.

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Yulin Liu, Yuxuan Lu, Kartik Nayak, Fan Zhang, Luyao Zhang, Yinhong Zhao. 2022-01-14. Empirical Analysis of EIP-1559: Transaction Fees, Waiting Time, and Consensus Security. https://doi.org/10.1145/3548606.3559341

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