Yesterday, an update called London took place on the Ethereum network at block 12,965,000. It also included the so-called EIP-1559, which changed the transaction formation model and introduced the burning of ETH.
And although the ethers really began to be burned, and some blocks even became deflationary – that is, more coins were burned than they were created – the problem of high commissions in the network was not resolved. In addition, miners faced inconveniences, which forced the 2Miners ETH pool team to change the payout model.
We discussed the details of the impact of EIP-1559 on commissions in the Ethereum network in a separate article yesterday. We recommend that you familiarize yourself in order to understand the essence and importance of what is happening.
In general, the situation in the ETH network after the update turned out to be much worse than the representatives of the 2Miners team had assumed. Eth users expected lower fees, which would make transactions very affordable.
Alas, the opposite happened: commissions remained high, as before. And although ether is really burned by the protocol, the owners of the cryptocurrency still pay a lot to make transfers.
What is especially important: now the pool cannot conduct transactions, indicating the low cost of gas, as it was before. Because of this, the 2Miners pool is forced to pay remuneration to its miners according to the so-called base commission, which currently exceeds 40 gvei. As a result of all the innovations in the Ethereum blockchain, the current payment model on the 2Miners ETH pool has been changed.
The default payout is 1 ETH
If this is too much, don’t worry, because now 2Miners miners can manually adjust the appropriate payout volume. However, by default, the indicator is exactly 1 ETH. The reason for this is simple: 2Miners developers do not want users to receive a payout of 0.005 ETH, spend 0.003 ETH on commission and end up with 0.002 ETH. On other pools, similar situations already occur – and this is illogical.
Payout fees are paid by miners
From now on, miners of the Ethereum pool 2Miners pay commissions for reward payments on their own. The maximum commission is $ 3. This means that if the cost of gas at the moment is too high, the pool will wait for its decrease in order to make a payment.
Note that 2Miners still pays commissions for paying rewards on pools of other cryptocurrencies on its own.
Let’s look at an example. At the moment, ETH costs $ 2,800, while each transfer of ethers on the network requires the consumption of 21 thousand units of gas. Different scenarios are possible depending on the cost of gas:
- Gas costs 10 gvei – miners pay 10 x 21,000 x $ 2,800 / 1,000,000,000 = $ 0.588 per transaction;
- Gas costs 40 gvei – miners pay 40 x 21,000 x $ 2,800 / 1,000,000,000 = $ 2.352 per transaction;
- Gas costs 80 gvei – miners pay 80 x 21,000 x $ 2,800 / 1,000,000,000 = $ 4.704 per transaction. Since this commission is higher than the $ 3 maximum, the 2Miners pool will wait for the gas price on the Ethereum network to decline before executing a transaction. If ETH is worth $ 2,800, the pool will pay out only if the gas price is below 51 gui.
The payment threshold is indicated by the miners
The amount of payments is indicated in the account settings menu and can be set in the range from 0.005 to 10 ETH. To apply the settings, you need to enter the IP address of your own rig.
After changing the payout threshold, it will take a few minutes before the new numbers start showing on the statistics page. The reason is the site cache, so you have to wait a bit here.
If you don’t know your IP address, this link will help. You can also ask for help in the helpdesk so that the indicators can be changed manually by representatives of the pool.
Keep in mind that it is the ETH miners who now pay the commission for making the payment of the reward, which means that if you set the minimum payment amount, most of the reward will go to the commission.
Let’s imagine that the current base commission is 40 gvei, and the miner sets a minimum payout of 0.005 ETH. This means that the cost of the transaction will be 40 x 21,000 / 1,000,000,000 = 0.00084 ETH.
This amount is equivalent to 17 percent of the total amount for payment, so at the exit the miner will receive 0.005 – 0.00084 = 0.00416 ETH in the wallet.
What is the base gas commission and where is it listed
The base commission is the default gas price. We are talking about a fixed indicator that smoothly changes depending on the change in the Eth network congestion. If the number of transactions carried out on the blockchain grows, the base commission grows, and vice
You can find out the size of the base commission on different platforms such as blockchain explorers, for example, Etherscan. To do this, click on the last created block and find the “Base Fee Per Gas” indicator.
New statistics page
The 2Miners pool team took advantage of the London update to update the Ethereum pool API and statistics pages.
Pool users can now see:
- detailed statistics on own workers;
- ball statistics – valid, irrelevant and stale-ball;
- the page for setting the minimum payout threshold.
Why isn’t the entire balance paid out from the pool?
Each payment processing on the Ethereum network requires a different amount of gas. Standard address-to-address translation uses 21,000 gas. A smart contract can use 30,000 – 50,000 gas or more (smart contract wallets are commonly used by cryptocurrency exchanges).
The gas limit on the 2Miners pool is set at 55 thousand. This means that during each payment to the miner, the pool blocks 55 thousand gas on his account. If, for example, only 35 thousand of gas is needed for payment, then the remainder of 20 thousand will be returned back to the miner on his “balance for payment”. That is, every time after payment, a small amount will remain on the balance.
Unfortunately, there are currently no workarounds to avoid this. Still, the Ethereum network lacks mechanisms to predict in advance the amount of gas required to transfer coins to a particular address: it can be a smart contract that requires a much larger amount of gas to interact. We will try to solve this problem in the future and then analyze, upon payment, whether this or that address is a smart contract. Then we will be able to avoid blocking excess gas, starting with the second payment for standard addresses that require 21 thousand gas to complete the transfer.
Let’s take an example.
The miner has 0.61 ETH on the balance for payment. He set the size of the payment to 0.6 ETH, which means that the payment worked on the pool.
Let’s say the Ethereum price is $ 2,800, the base fee is 20 gvei, and the miner uses a standard wallet such as Coinomi, Trust, MEW, or Metamask to receive the payout. To transfer to them, only 21,000 gas is needed.
- 55,000 gas blocked by the pool -> 55,000 * 20 / 1,000,000,000 = 0.0011 ETH ($ 3.08)
- 21,000 gas used to complete the transfer of 0.00042 ETH ($ 1.176)
- 34,000 gas will be returned back to the miner’s balance on a pool of 0.00068 ETH ($ 1.904)
The 2Miners pool team apologizes for any inconvenience caused by the changes. Alas, the current situation arose due to the actions of the Ethereum developers, and representatives of 2Miners do not see any positive aspects in the London update. The only possible advantage is the burning of about 4 ETH every minute, which in theory makes a deflationary asset out of ether. In the future, this may increase the value of ETH, the developers of the project believe.