Ethereum Co-Founder's Proposal to Lower Gas Fees with EIP-7706

Ethereum Co-Founder's Proposal to Lower Gas Fees with EIP-7706

Sofia Lopez
2 min read

Vitalik Buterin Proposes EIP-7706 to Address Ethereum's High Gas Fees

Vitalik Buterin, the co-founder of Ethereum, has put forward a solution to the network's high gas fees with the introduction of EIP-7706. This proposal seeks to alleviate the issue by creating a new category of gas specifically for calldata transactions, which will have its own basefee and per-block gas limits. The primary objective is to decrease the theoretical maximum calldata size per block and increase the affordability of calldata. Moreover, the proposal aims to improve the overall efficiency and stability of the Ethereum network by unifying the handling of all three types of gas through the same code paths. Buterin's larger goal with this update is to establish a more efficient transaction processing model within Ethereum.

Key Takeaways

  • Vitalik Buterin proposes EIP-7706 to tackle Ethereum's high gas fees.


Vitalik Buterin's initiation of EIP-7706 for Ethereum endeavors to tackle the challenge of high gas fees through the introduction of a new gas type for calldata transactions. This modification has the potential to reduce calldata size per block, consequently enhancing network efficiency and stability. Entities and individuals engaged in Ethereum's calldata transactions, including decentralized finance (DeFi) platforms, stand to gain from reduced costs. In the short term, this update may drive greater activity on the Ethereum network. However, potential indirect ramifications include concerns about centralization if prominent entities monopolize the more economical calldata transactions. Over the long term, this update contributes to Buterin's vision of a more scalable Ethereum, potentially exerting influence on other blockchain projects.

Did You Know?

  • Ethereum: Ethereum is an open-source, blockchain-based platform facilitating the development of decentralized applications (dApps). Co-founded by Vitalik Buterin in 2014, it has evolved to become the second-largest cryptocurrency by market capitalization.
  • EIP-7706: EIP stands for Ethereum Improvement Proposal, serving as a design document detailing new features or enhancements to the Ethereum network. EIP-7706, proposed by Vitalik Buterin, aims to address the issue of high gas fees in Ethereum. Gas fees refer to the costs associated with executing transactions or smart contracts on the Ethereum network.
  • Calldata transactions: Calldata is a form of data storage in Ethereum utilized for transmitting input data to smart contracts. Calldata transactions involve the transfer of data to a smart contract without altering the contract's state, effectively constituting read-only transactions. EIP-7706 seeks to diminish the theoretical maximum calldata size per block and render calldata transactions more economical.

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