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# System prepended metadata

title: Genuine Labs EIP1559 Implementations

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### Overview

Ethereum Improvement Proposal (EIP) 1559 is an upgrade that happened on August 5, 2021 to change how Ethereum calculates and processes network transaction fees (called "gas fees"). The upgrade made Ethereum transactions more efficient by using a system of block-based base fees, and sender-specified max fees, rather than bidding on gas prices to more evenly incentivize miners in periods of high or low network congestion.

Due to the fact that current nodes are constantly being attacked by p2p storm, the demand for figuring out a way that would prevent network from flooding that kinds of transactions is much more pressing now than it was previously.

We - Genuine Labs propose this implementation to prevent spam attacks on the network by dynamically adjusting transaction fees based on network congestion.

### EIP-1559 mechanism
The heart of the EIP-1559 fee market is the adjustment of the base fee. The base fee represents the minimum fee required to include a transaction in a block.

The base fee adjustment is based on the concept of "block space competition." If the network is congested and more users want to send transactions, the base fee increases to allocate block space to the highest bidders. Conversely, if the network is underutilized, the base fee decreases to reduce transaction costs.

As a side effect of a more predictable base fee, EIP-1559 may lead to some reduction in gas prices if we assume that fee predictability means users will overpay for gas less frequently. With EIP-1559, the base fee will increase and decrease by up to 12.5% after blocks are more than 50% full. For example, if a block is 100% full the base fee increases by 12.5%; if it is 50% full the base fee will be the same; if it is 0% full the base fee would decrease by 12.5%. 

The base fee is constrained by minimum and maximum values defined as MinBaseFee (0.0025) and MaxBaseFee (5), respectively.

### Approach with Terra Classic

Since Genuine Labs has suggested focusing on implementing Tax2Gas. If this proposal be approved, it will be carefully evaluated and computed to make it match with the Tax2Gas works. 

To be specific:

The gas-prices as we save in params will become base gas prices, which make current gas price fluctuate between min and max gas prices range. 