What Is the Target Block Utilization Rate for Ethereum under EIP-1559?
The target block utilization rate for Ethereum under EIP-1559 is 50% of the maximum block gas limit. This design choice ensures that the base fee mechanism has room to dynamically increase or decrease fees, allowing the network to handle temporary spikes in demand by doubling the block size to 100% utilization without immediate, extreme fee volatility.
Glossar
Target Block Utilization
Utilization ⎊ The specific metric representing the degree to which the maximum allowable block size is being consumed by transaction data at any given moment.
Target Block Utilization Rate
Metric ⎊ The target block utilization rate is a key metric in blockchain networks, representing the optimal percentage of a block's capacity that should be filled with transactions.
Eip-1559
Upgrade ⎊ EIP-1559, or Ethereum Improvement Proposal 1559, represents a significant upgrade to the Ethereum network's transaction fee mechanism.
Target
Precision ⎊ A target, within cryptocurrency derivatives and financial markets, denotes a predetermined price level or state serving as a focal point for trading strategies and risk management protocols.