EIP-1559 is a new proposed pricing mechanism for the Ethereum protocol developed to bring stability to fluctuating gas prices. To properly understand this as a stochastic process, it is necessary to develop the mathematical foundations to understand under what conditions the base fee gas price outcomes behave as a stationary process, and when it does not. Understanding these mathematical fundamentals is critical to properly engineering a stable system.

Categories: cs.GT cs.CR

Stochastic Properties of EIP-1559 Basefees