Vitalik Buterin's Ethereum Gas Fee Problem
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Yerevan (CoinChapter.com) — Ethereum transactions involve two main types of gas fees: one for execution and one for storage. Execution fees cover the computing power required to process transactions. Storage fees, on the other hand, involve the cost of storing data, known as “blobs.” This dual fee structure has been a point of contention in the Ethereum community.
EIP 7706: A New Ethereum Gas Fee Proposal
Ethereum co-founder Vitalik Buterin has proposed a major change through Ethereum Improvement Protocol (EIP) 7706. The new proposal aims to introduce a third type of gas fee specifically for call data, which is the part of Ethereum transactions that transmits important information to smart contracts.


Vitalik Buterin's EIP-7706 gas fee reform proposal. Source:
Raen Lyon
Currently, base fee adjustments use different mechanisms for execution costs and storage costs. EIP 7706 proposes a unified approach to incorporate the cost of calling data. This change could significantly reduce transaction costs for data-intensive transactions that do not require a lot of computing power.
How the New Gas Models Work
Under the proposed model, Ethereum will assign unique fees to data transferred during transactions. This will be separate from the cost of executing contract code or storing data. The new transaction type will include max_basefee and priority_fee as vectors, providing values for execution gas, blob gas, and call data gas.


The benefits of calling data gas fees. Source:
Kyle Chassé
Buterin's proposal aims to make call data much cheaper. By implementing a separate gas fee for call data, the theoretical maximum call data size of a block will be reduced. This dynamic model will adjust fees at the same time, potentially leading to lower costs overall.


The impact of EIP-7706 on gas fees. Source:
Kyle Chassé
Despite the potential benefits, the proposal also brings with it a set of challenges. The Ethereum network has been struggling with high gas fees for years. While the move from proof-of-work to proof-of-stake was intended to increase scalability and reduce costs, the expected improvements have not fully materialized.
Mixed reactions from the Ethereum community
The Ethereum community has had mixed reactions to EIP 7706. Some see it as a necessary step to solve the ongoing problem of gas fees, while others are cautious about its implementation. Vitalik Buterin said,
Vitalik Buterin's EIP 7706 proposal is a big step towards optimizing Ethereum's gas fee structure. By separating the cost of calling data from execution and storage fees, the network may see a reduction in transaction costs for data-intensive transactions. While the Ethereum community discusses this proposal, its potential impact on network scalability and cost-effectiveness remains a topic of great concern.