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High gas prices have historically been an issue for Ethereum during periods of high demand. These charges caused by network congestion are an ongoing problem. In response, Ethereum co-founder Vitalik Buterin has proposed a number of changes to improve productivity and better control transaction fees.
He proposed a number of important adjustments focused on reducing gas costs for various Ethereum Virtual Machine (EVM) opcodes. Buterin wants to reduce the gas cost for EVM opcodes to 1, which currently ranges from 2 to 5, and to 2 for EVM opcodes, which currently range from 6 to 10.
This action makes smart contract execution more economical and effective, increasing overall throughput (TPS).
Buterin also proposed cutting the cost of log gas by four times. Logs that hold transaction data frequently cause gas prices to rise. If this were halved, networks would be able to process transactions more quickly and efficiently without charging users excessive fees.
In addition, Buterin suggested reducing the cost of precompiled gas. Precompiled contracts that govern specific cryptographic operations are less expensive.
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However, Buterin also noted that Ethereum may make exceptions for precompiled contracts. These changes have the potential to improve Ethereum transaction processing speed by 1-5x without impacting important worst-case metrics such as call data size or input/output (IO) operations. Ethereum gas fees are currently very low, so now is the ideal time to implement these optimizations. According to on-chain data, the burn rate remains high, with over 513,000 ETH being burned per year, but Ethereum’s supply growth rate remains positive at +0.37% per year.
Annual network issuance is approximately 957,000 ETH. Ethereum can more effectively support decentralized finance (DeFi) applications, manage larger transaction volumes, and improve user experience by increasing gas efficiency. These adjustments are part of Ethereum's continued efforts to grow and maintain its position as a top blockchain platform.
