ETH 1559 Community Call Notes

It's not being voted on today, but today is to address questions/concerns within the community.
Chun said: ETH has value not because of miners, but because of its use as a platform.
If ETH has an unlimited amount of hashpower, there is a great risk of a 51% attack. This has happened
on every network apart from ETH and BTC.
When 1559 was first thought up, the gas was really little - now it's 2x the base fee.
Flexpool.io Survey from Chris:

Roger Mao said: “My customers will be upset”

He does advocate for the future of ETH and apparently to him, ASICs only represent 10% of the total
hashrate.
Chris (I think) said: “It's fine, but the fee could be 60-80%” (very bad).
ETH doesn't have to do anything for miners,
We don't have to either. If it's unproportionally balanced it can be attacked, EIP1559 will allow them to
fix attacks.
ASICs are a big risk.
It could mean 20-30% of lower earnings, allegedly.
Chris said: “They want to pay less for security, but they should be wanting to pay more” which means
basically, they want to stabilize the transaction.
Aftab agrees, since most people's first experience will be paying a fee and not knowing how to
troubleshoot it when it's stuck. He's also saying miners have been helpful, but since the beginning of
ETH PoS has been the main focus.
Miners get more from MEV auctions.
We don't necessarily need to know about it, we just make more.
ETH network is to support the transactors and investors, not the miners

https://medium.com/offchainlabs/meva-what-is-it-good-for-de8a96c0e67c

Currently mining is basically people overpaying for security which is the big issue.
The main concern in 2018 was that there would be ___ of the hardware design.
Much less efficient supply chain on mining for participation (not sure what this means).
The movement of ProgPoW movement had some issues, not too many though.
The concern with ETH 2.0 is whether some miners can get into it.
Right now, 10% as ASICs isn't an issue. If it becomes more, then it can get very bad.
ASICs are also stuck on 1 algo so that becomes an issue with transition to different algos (EIP 969).
With an uncapped limit all you're doing is telling the price to go up.
There's also money to be made in other methods, MEVs especially
20,000 ETH made every day.
8 million ETH made per year.
Compare it to other PoS and you can see the difference.
Staking reward barely pays for developers.
10x difference in security.
Chris said: “Pools are saying that they don't want to lose their miners”.
Miners are workers!
We're all (miners) technically small business owners (according to him).
1559 is important, but the mining community doesn't want it to be cut so much (i.e. it should be less
than half).
I think F2Pool makes up 10% of the hashrate with no changes to EIP 1559?
We want EIP1559+EIP969 !
If ASICs become dominant and they become a threat, there are many approaches we can take.
While miners are small businesses, making assumptions based on high transaction rates is basically
buying at the top (very risky!).
ASICs haven't taken over BTC because of memory bandwidth, and memory bandwidth between ASICs
and GPUs isn't that much different.
EIP 969 would be forcing ASIC manufacturers to put in GPU cores, which adds to the cost.
EIP 1559 comes into effect on the mainnet (if passed by devs) in July/August, with the discussion next
Friday?
London will happen in July because of the Ice Age (need to research this)
The goal of EIP1559 is to answer the short-term instability of the fees, not the long term
I.e. if you have 7 spikes due to events they'll be able to stabilize it
Both price growth and yield growth are related.
If either one goes down (due to burning) there will be issues.
There was a 25ETH block reward a couple of days ago.
Fees shot up because liquidators were liquidating.
About 2 eth would've gone to miners and 19-21 of it in fees would've gone to miners (MEV).
Only 2-3 eth would've been burned.
The majority of the transaction will still go to miners, apparently over 90%.
There's something they can do about high tips but they don't know yet right now.
EIP 1559 is short term just about fees, basically decreasing short-term fees which are driven by supply
and demand on the blockchain.
EIP 1559 focuses on addressing the high fees.
Keep in mind that the fees within a single block are very widely distributed at high values.
EIP 1559 will stop fees from infinitely increasing due to congestion and use, and congestion is due to
users who pay the price for it.
If 51% moves to nicehash, someone can rent that and do an attack. People who attack have no long-
term commitments unlike miners.
There should be worry about a 51% move to nicehash, as you can rent it for much less than what you
make with the attack. Regardless, there are ways to combat this.
Georgios said: As the ETH economy grows, Miner revenue grows.

Iconic moments:
Vibrating Tim (Either Cold or doing Weird Stuff)
Bad Mic Rick
Strawberry Wang Chun/No One Understanding Wang Chun’s Broken English
Funny Accent Barnabe