Péter Szilágyi, an Ethereum (ETH) developer, recently praised Ethereum Improvement Proposal 1559 (EIP-1559), describing it as “the great equalizer.”
In a post published on January 16, Szilágyi praised the protocol’s ability to level the playing field between validators and regular Ethereum network users.
EIP-1559, implemented to improve Ethereum’s gas fee mechanism, introduced the concept of a “base fee” that users could bid for transactions.
The base fee is then burned off or transferred to an irretrievable wallet. According to Ultrasound Money data, over 3.9 million ETH have been burned since the introduction of EIP-1559.
In the last week alone, the Ethereum network automatically removed over 21,100 ETH from circulation, emphasizing the ongoing “burning” of ETH’s supply enabled by EIP-1559.
Szilágyi emphasized the advantages that regular users now have with EIP-1559. Previously, validators (formerly miners in Ethereum’s proof-of-work model) could arbitrarily adjust gas limits and transaction fees.
EIP-1559 corrected this imbalance, requiring everyone to follow protocol-defined rules regardless of their role as a validator, founder, or user.
EIP-1559’s base fee adjustment, implemented at the protocol level, contributes to ETH’s gradual deflation. The base fee-burning mechanism reduces Ethereum’s inflationary pressure while keeping transaction costs predictable for senders. Senders can “tip” validators to encourage them to prioritize specific transactions.
Szilágyi’s comments reflect a growing consensus within the Ethereum community about the positive impact of EIP-1559.
Aside from price implications, the proposal improves the user experience by providing predictability in transaction costs, especially during network congestion.
Although Szilágyi believes EIP-1559 is a “bad idea,” it has played an important role in stabilizing the Ethereum network.
ETH burning, facilitated by EIP-1559, helps to reduce inflation in Ethereum, a network without a capped total supply like Bitcoin.
While this may have long-term price benefits, current bullish sentiments indicate a limited upside potential, with prices hovering around the psychological round number of $3,000.