EIP-1559 - Transaction Fee Split
How the transaction fees split changed after EIP-1559?
With the introduction of EIP 1559, the base fee is burnt. Prior to that, all transaction fees were paid to the miner(validator).
We can figure out the split by querying the fees burnt (
base_fee * gas_used) and miner fees (
priority_fee * gas_used) for each transaction.
SELECT DATE_TRUNC('month', tx.block_time) AS month, --before london upgrade, all gas fees went to the miner --after london upgrade, only the priority fees goes to the miner SUM( CASE WHEN tx.block_number < 12965000 THEN tx.gas_used * tx.gas_price/1e18 ELSE tx.gas_used * tx.priority_fee_per_gas/1e18 END ) as fees_miner_eth, SUM(tx.gas_used * blk.base_fee_per_gas/1e18) AS fees_burnt_eth FROM ethereum.transactions tx INNER JOIN ethereum.blocks blk ON tx.block_number = blk.number WHERE tx.block_time >= '2021-01-01' GROUP BY month;
👨🏽💻 Fork the above query and give it a try.
We can see that a significant amount of ETH is burned following the London upgrade. This is commonly referred to as the first step in ETH becoming ultrasound money.
ETH is continuously issued to miners/validators as block rewards to secure the network. However, by burning the base fee, the issuance rate is reduced.
When the amount of ETH burned exceeds the amount of ETH issued, ETH becomes deflationary. Hence the meme term ultrasound money.