Let’s continue the last call’s discussion about how ETC should implement 1559.

You can join the Green Room 1 hour before we go live to chat offline, from now on in the ethereumclassic.org/discord #community-calls channel

This voice chat is an open discussion and anyone is free to join and chat.

AI Generated Summary

Key takeaways

The group discussed implementing an EIP-1559-like mechanism for Ethereum Classic to maintain compatibility with upstream Ethereum
Four options were considered: smoothing over blocks, Olympia treasury system, reservoir system, and hybrid approaches
There was agreement on the need for 1559-style transactions, but disagreement on whether to implement a treasury system
Transaction fees are important for long-term miner incentives as block rewards decrease
The current ETC ecosystem faces funding challenges for maintenance and development
Tensions emerged between Chris and Istora regarding consensus and implementation details of the Olympia proposal

Istora: Introduced the four main options for implementing a 1559-like mechanism in ETC

Details
- Istora: We need 1559 for compatibility and interoperability with upstream Ethereum
- Istora: We can’t copy Ethereum exactly because they burn transaction fees, which would affect ETC’s emission schedule
- Istora: Transaction fees will be important for incentivizing mining in the future as block rewards decrease
- Cody: It’s a problem for all blockchains - at some point transaction fees need to make more than block rewards
Options Discussed
- Smoothing over blocks: Distributing transaction fees over multiple blocks
- Olympia: A treasury system for funding development and maintenance
- Reservoir system: An idea proposed by Istora since the last call
- Hybrid approach: Combining different mechanisms together

Cody: Explained the Olympia proposal as a way to create sustainable funding for ecosystem development

Details
- Cody: Olympia would create a community DAO where people can make proposals and get funding
- Cody: The base fee would partially go to the Olympia DAO treasury contract, with the remainder to miners
- Chris: Olympia is a framework with multiple ECIPs (1111, 1112, 1113, 1114)
- Chris: ECIP-1111 handles Type 2 transactions and fee redirect, 1112 is the immutable treasury contract, 1113 is the DAO framework
- Istora: Questioned how the treasury would be governed and whether it could be implemented fairly
- Chris: The proposal includes options like one-address-one-vote with Sybil resistance mechanisms
Concerns
- Istora: Worried about centralization and changing ETC’s commodity-like properties
- Istora: Questioned how voting tokens would be distributed fairly
- Istora: Concerned about the LLC structure mentioned in the proposal
- Chris: Explained the LLC would only handle fiat conversions when needed, not control funds

Cody: Discussed the importance of transaction fees for long-term sustainability

Details
- Cody: Current transaction fees are very low (about $1,000/week or $50K/year)
- Istora: At current rates, transaction fees wouldn’t even pay for a single person’s salary
- Cody: We need to increase transactions and demand for the chain
- Istora: Shared a visualization showing block rewards decreasing over time
Future Considerations
- Cody: At some point there will be a crossover where block rewards are less than transaction fees
- Cody: We want transactions to increase before block rewards decrease too much
- Chris: Type 2 transactions will generate $0 on implementation day because they’re opt-in

Cody: Discussed current funding challenges and potential solutions

Details
- Cody: The ETC Co-op currently spends about $40,000/month on services and personnel
- Chris: The Co-op reduced staff in December 2024 after heavy payroll burn
- Cody: ETC has good fundamentals but lacks marketing presence compared to other projects
- Istora: ETC is probably more valuable fundamentally than many higher market cap coins due to fair distribution
Funding Models
- Chris: Current client maintenance is centralized and needs sustainable funding
- Istora: Suggested following Bitcoin’s model for funding development
- Chris: Bitcoin has different maintenance requirements than ETC

Chris: Mentioned updating the official Discord server

Details
- Chris: The current server is owned by an absent person named Miko and is overrun with bots
- Istora: The plan is to update the Ethereum Classic website to change the default Discord server to a new one
- Chris: The new server will have active maintainers and better moderation
- Istora: The new server will allow for more integrations and automations

Chris
- Prepare a blog post with 3-4 options for treasury implementation to discuss next time
- Be prepared with examples of 1113 frameworks for the next call
Cody
- Talk with Diego about looking at the 1559 work
- Start looking at how to set up a testnet for 1559 implementation
All
- Meet again in 2 weeks to continue the discussion
- Discuss implementation details of ECIP-1112 and 1113 in the next call