Vitalik Buterin highlights the importance of EIP-1559 to Ethereum's supply

There's been much controversy over recent days over Ethereum's supply.

Ethereum, on the other hand, has no maximum supply integrated into the protocol as its rate of issuance is not based on an algorithm/curve, but instead on developer decisions.

Ethereum could become deflationary with technical upgrade: Vitalik Buterin.

If you've been following Ethereum over recent months, the term "EIP-1559" has likely come up many times.

EIP-1559 - or Ethereum Improvement Proposal 1559 - suggests that the current transaction model of the blockchain is currently "Inefficient and needlessly costly to users." Ethereum's current model has transactors bid in a two-sided market to get their transactions included in blocks first.

To solve this purported inefficiency, Buterin, who co-authored the proposal alongside other developers, is suggesting the implementation of a "Market rate" or flat rate for Ethereum transactions.

"The purpose of EIP 1559, according to Eric Conner, is to provide wallets and users a much needed improvement to the user-experience of gas management. The way that EIP 1559 solves the gas-management problem also improves Ethereum's monetary management system."

In the aforementioned tweet on Aug. 7, Buterin invoked the technical improvement as an answer to the criticism that Ethereum has no strict supply cap.

"I love how people have been so awkwardly trying to press ethereum on its lack of a preset"21 million"-like hard cap, when transaction fees the past 2 months have been high enough to more than fully cancel out PoS rewards post-EIP 1559," Buterin remarked on the matter.

Considering the implications of the upgrade, the Ethereum community has been quite excited to try and push the upgrade live.