Post EIP 1559: How to evaluate the impact of the ETH Gas on the miners revenue?

[Didz]

Hey guys,

I tried to wrap my head around the effect of EIP 1559 on the miners revenue.

So now the transaction fee is split into two parts:

Base fee (Fixed based on how full the block is)
Inclusion fee (Set by the user. "Miner Tip")

So I understand the base fee itself will vary, going up when the network is busier and down when things are calmer. I also get that the base fee is now burned which will create a deflationary or inflationary state depending if the base fee is higher or lower than the reward which include the mining tip I guess.

My question as a miner is how can we know if the Inclusion fee is high or low?
I know we can check this webpage to know how ETH gets burned with EIP-1559 https://etherchain.org/burn
so if I'm not wrong, on that same webpage, knowing that the block reward is 2 ETH we can look at the total reward for each block and subtract 2 to get the miner tip?  For instance, block# 12976343 had a reward of 2.06504 ETH so if we subtract 2 we get 0.06504 of miner tip? But do we have the average miner tip somewhere as a data instead of looking at a bunch of block rewards?

What I try to say is before EIP 1559 I was looking at the average ETH gas to give me a feeling how my earnings was impacted by the transaction fees but now I am wondering when I look at the ETH gas what does it mean now for us miners?

Thanks

[swogerino]

Hey guys,

I tried to wrap my head around the effect of EIP 1559 on the miners revenue.

So now the transaction fee is split into two parts:

Base fee (Fixed based on how full the block is)
Inclusion fee (Set by the user. "Miner Tip")

So I understand the base fee itself will vary, going up when the network is busier and down when things are calmer. I also get that the base fee is now burned which will create a deflationary or inflationary state depending if the base fee is higher or lower than the reward which include the mining tip I guess.

My question as a miner is how can we know if the Inclusion fee is high or low?
I know we can check this webpage to know how ETH gets burned with EIP-1559 https://etherchain.org/burn
so if I'm not wrong, on that same webpage, knowing that the block reward is 2 ETH we can look at the total reward for each block and subtract 2 to get the miner tip?  For instance, block# 12976343 had a reward of 2.06504 ETH so if we subtract 2 we get 0.06504 of miner tip? But do we have the average miner tip somewhere as a data instead of looking at a bunch of block rewards?

What I try to say is before EIP 1559 I was looking at the average ETH gas to give me a feeling how my earnings was impacted by the transaction fees but now I am wondering when I look at the ETH gas what does it mean now for us miners?

Thanks

I used to withdraw yesterday from Ethermine because they lowered their payout and I setup the settings GAS price threshold now to 40 Gwei and the payment didn't come because the minimum network fee was 67.6 Gwei at the time I request so I set it up at 100 and the payout came swiftly.I don't know if that helps much but what I can see with EIP 1559 is that the price of Gwei or the fees to send and receive transactions are higher than before so this update has affected the fee price.
However to come at a conclusion we have to see some more days how the fees,Gwei price will fluctuate and after that is into place we can say for sure if the fees are high or low but for the moment are higher.

[Vann]

The priority fee (miner tip) comes from users, so it's not inflationary. For the block to be deflationary to the ETH total supply, the base fee (also comes from users), which is the only part of the fees that is burned, must be higher than the 2 ETH block reward that comes from inflating the ETH total supply.

There is also ETH supply inflation created on the POS ETH beacon chain which is not being included in the total supply until the POW to POS merge. EIP 1559 basically just slows down the rate of inflation by burning the base fee portion of the network fees instead of rewarding it to miners.

https://www.youtube.com/watch?v=faf1M4fzv8I

[Didz]

Hey guys,

I tried to wrap my head around the effect of EIP 1559 on the miners revenue.

So now the transaction fee is split into two parts:

Base fee (Fixed based on how full the block is)
Inclusion fee (Set by the user. "Miner Tip")

So I understand the base fee itself will vary, going up when the network is busier and down when things are calmer. I also get that the base fee is now burned which will create a deflationary or inflationary state depending if the base fee is higher or lower than the reward which include the mining tip I guess.

My question as a miner is how can we know if the Inclusion fee is high or low?
I know we can check this webpage to know how ETH gets burned with EIP-1559 https://etherchain.org/burn
so if I'm not wrong, on that same webpage, knowing that the block reward is 2 ETH we can look at the total reward for each block and subtract 2 to get the miner tip?  For instance, block# 12976343 had a reward of 2.06504 ETH so if we subtract 2 we get 0.06504 of miner tip? But do we have the average miner tip somewhere as a data instead of looking at a bunch of block rewards?

What I try to say is before EIP 1559 I was looking at the average ETH gas to give me a feeling how my earnings was impacted by the transaction fees but now I am wondering when I look at the ETH gas what does it mean now for us miners?

Thanks

I used to withdraw yesterday from Ethermine because they lowered their payout and I setup the settings GAS price threshold now to 40 Gwei and the payment didn't come because the minimum network fee was 67.6 Gwei at the time I request so I set it up at 100 and the payout came swiftly.I don't know if that helps much but what I can see with EIP 1559 is that the price of Gwei or the fees to send and receive transactions are higher than before so this update has affected the fee price.
However to come at a conclusion we have to see some more days how the fees,Gwei price will fluctuate and after that is into place we can say for sure if the fees are high or low but for the moment are higher.

Actually if I'm not wrong the ETH gas is now dynamically/automatically adjusted by the ETH protocols, you cannot decide anymore how much gas you want to pay on a transaction, you can only decide if you add miner tip to get your transaction executed first by miners because of the Miner Extractable Value (MEV) remains active (miners approve transactions with the higher transaction fees first).

Miners don't receive the Base fee (or formerly called the ETH gas) anymore,  the Base fee is now burned automatically, we (miners) only get the miner tips now.

[Didz]

The priority fee (miner tip) comes from users, so it's not inflationary. For the block to be deflationary to the ETH total supply, the base fee (also comes from users), which is the only part of the fees that is burned, must be higher than the 2 ETH block reward that comes from inflating the ETH total supply.

There is also ETH supply inflation created on the POS ETH beacon chain which is not being included in the total supply until the POW to POS merge. EIP 1559 basically just slows down the rate of inflation by burning the base fee portion of the network fees instead of rewarding it to miners.

https://www.youtube.com/watch?v=faf1M4fzv8I

Exactly Vann that's what I realized this morning in my shower lol.

Ho yea you're right also about the ETH supply inflation created on the POS ETH beacon chain.
Damn I would have give you a merit point but I don't have any to give

[adaseb]

How do you add a miner tip when you make a transaction? Basically I haven't done an ETH transaction yet after the fork. However when I make the transaction, I set a gas price and gas limit, there is no miner tip anywhere there.

If the average gas price is like 50 Gwei, I would set that and the gas limit which is 21000 for ETH transactions. So it would be like 0.001 ETH fee. So does the miner tip automtically get calculated depending on how busy the block is?

I noticed on etherscan right now there is a new option called TxN type and its 0 for legacy transctions. And I noticed that on some transactions its 2 which is called EIP-1559 and this if you look into the details show the base fee and txn savings, etc.

[jgonzi]

Here you have a tx with TIP. Coinbase has finally added. There are very few Wallets or Exchange with the new implementation:

https://etherscan.io/tx/0x6a5948134751979eb010f8202b5eaa975b9640afedafff22a670b78605d7b278

[Didz]

Here you have a tx with TIP. Coinbase has finally added. There are very few Wallets or Exchange with the new implementation:

https://etherscan.io/tx/0x6a5948134751979eb010f8202b5eaa975b9640afedafff22a670b78605d7b278

jgonzi from the link you shared, here's what I understand:



Also if I'm not wrong the ETH base fee is dynamically/automatically adjusted by the ETH protocols, you cannot decide anymore how much gas you want to pay on a transaction, you can only decide if you add miner tip to get your transaction executed first by miners because of the Miner Extractable Value (MEV) remains active (miners approve transactions with the higher transaction fees first).

So to answer my OP question, when we look for instance at the average ETH gas price it includes the Base Fee + the Miner Tip so it is for us miners still relevant if we see that the average ETH gas price goes up, it's good for our wallet because we pocket the miner tips.

[jgonzi]

Here you have a tx with TIP. Coinbase has finally added. There are very few Wallets or Exchange with the new implementation:

https://etherscan.io/tx/0x6a5948134751979eb010f8202b5eaa975b9640afedafff22a670b78605d7b278

jgonzi from the link you shared, here's what I understand:



Also if I'm not wrong the ETH base fee is dynamically/automatically adjusted by the ETH protocols, you cannot decide anymore how much gas you want to pay on a transaction, you can only decide if you add miner tip to get your transaction executed first by miners because of the Miner Extractable Value (MEV) remains active (miners approve transactions with the higher transaction fees first).

So to answer my OP question, when we look for instance at the average ETH gas price it includes the Base Fee + the Miner Tip so it is for us miners still relevant if we see that the average ETH gas price goes up, it's good for our wallet because we pocket the miner tips.

You are completely right... so if you want a faster tx , just pay the basis fee and add a good tip. But a very small group of Exchanges or Wallet have it. Also all pools have add it but no ones is tipping at the moment

[Didz]

Here you have a tx with TIP. Coinbase has finally added. There are very few Wallets or Exchange with the new implementation:

https://etherscan.io/tx/0x6a5948134751979eb010f8202b5eaa975b9640afedafff22a670b78605d7b278

jgonzi from the link you shared, here's what I understand:



Also if I'm not wrong the ETH base fee is dynamically/automatically adjusted by the ETH protocols, you cannot decide anymore how much gas you want to pay on a transaction, you can only decide if you add miner tip to get your transaction executed first by miners because of the Miner Extractable Value (MEV) remains active (miners approve transactions with the higher transaction fees first).

So to answer my OP question, when we look for instance at the average ETH gas price it includes the Base Fee + the Miner Tip so it is for us miners still relevant if we see that the average ETH gas price goes up, it's good for our wallet because we pocket the miner tips.

You are completely right... so if you want a faster tx , just pay the basis fee and add a good tip. But a very small group of Exchanges or Wallet have it. Also all pools have add it but no ones is tipping at the moment

I heard that a lot of pools ask the members to pay now for the payments (when the miners receive the ETH they mined). Son of a Tech was saying in one of his Youtube video that Hiveon pool is the only mining pool who didn't change its rules because they make money from their operating system HiveOS not on their mining pool. There's no fees to receive the ETH we mine on Hiveon pool and its MEV.

[HardCore12V]

I don't pay a dime for withdrawal on ViaBTC, no withdrawal fee your ETH goes to CoinEX and you swap to whatever you want, I always swap for USDT and send through TRC20 which costs 1$ only

[adaseb]

I don't pay a dime for withdrawal on ViaBTC, no withdrawal fee your ETH goes to CoinEX and you swap to whatever you want, I always swap for USDT and send through TRC20 which costs 1$ only

Pools and maybe Gemini are the only services out there that don't charge any withdraw fees. Gemini is the only exchange I know which has free withdraws. There might be some gambling sites out there also which have free withdraws.

Pools are free for a reason. They are a pool. So what they do is they create a transaction and use a very low fee of like 1 Gwei and include this transaction to every block until someone from the pool finds a block. So what happens is the pool that finds the block is the pool that you are using and doing the free withdraw.

TRC20 is super fast, but the issue is that many exchanges that use tether don't use TRC20 yet. They are mostly under the old OMNI and ERC20 tokens. I don't know why its taking so long for all the exchanges to add USDT on Tron network. Fees are crazy high for ERC20 withdraws. Seems that the omni withdraws would be cheaper.