LATEST: Vitalik Buterin Proposes EIP-7706 as a Way to Improve the Ethereum Gas Problem

Ethereum co-founder Vitalik Buterin has come up with a new protocol, EIP-7706, with an intention to overhaul the gas fee structure on the Ethereum blockchain. This new model introduces a third category of gas fee meant to be applied only to call data—that is, the information that gets relayed to smart contracts through transactions. That would be meant to help, in turn, reduce costs by segregating call data charges from transactions that are data heavy but light in computational demand. Further improvements in overall efficiency are synchronized in the management of execution, blob storage, and call data fees in Buterin’s dynamic model.

Currently, Ethereum has separate policies for the pricing of transaction execution, data storage, and access to data. EIP-7706 aims to unify the first two and build on them with the newly proposed call data fees. Call data costs being introduced explicitly may severely cut the theoretical maximum size of call data per block, which in turn may result in cheaper transactions on average.

This is in line with Ethereum’s constant moves to solve problems related to high gas fees that have always affected the network since its inception. The consensus of proof of stake was one such step, reducing costs, and this latest promise by Buterin only puts more credibility into those initial promises by further fine-tuning the fee structure to perfectly match the widely varying demands in Ethereum transactions.

EIP-7706

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