The issues of fees and who sets them is a significant consideration for decentralized applications. For instance, the bitcoin network block size is set by default by core developers. On the other hand, Ethereum allows mining pools to set them. In the case of bitcoin, a time came when core developers could no longer reach consensus. Hence, a hard fork that gave birth to Bitcoin Cash occurred. Ethereum seems to solve the problem by introducing gas limits, allowing mining pools to alter block size by +/-0.1% from the previous block. However, it suffices another problem: few mining pools, controlling over 70% of the hash power, decide the “right” gas limit. To avert this, the Ethereum Eagle project seeks to solve the gas limit permutation problem and introduce an incentive model that benefits miners, core developers, and the community at large.
What is EGL?
Unlike the traditional ethereum gas limit permutation, EGL allows the ethereum community to influence Ethereum Gas Limit by staking ETH to earn free EGL. Mining pools and core developers who consent to the community votes also earn rewards for listening to the community and user preferences.
Simply put, EGL shifts the gas limit setting from mining pools to the community. EGL is an on-chain coordination token that creates an economic incentive for the community to research and vote on desired gas limits and rewards mining pools for listening to community desired limits.
For instance, an Eth holder stakes ETH to participate in the EGL Genesis to receive free EGLs. After the Genesis lockup of 1 week or 100 000 ETH threshold, holders can claim staked ETHs and free EGLs.
How to Make Money with EGL
By solving a gas limit influencing problem, the Ethereum Eagle project unraveled several ways to make money. They include;
The EGL allows the Etherum community, any ETH holder, to stake ETH for EGL in the EGL Genesis. By doing so, the holder obtains an equivalent number of EGL at the close of the EGL Genesis contract slated one week or when the threshold of 100,000 ETH is reached at the rate of 750m equals 100,000 ETH. Upon compilation, the contract sends the ETH and EGLs to a 50–50 Balancer pool, mint Balancer Pool Tokens (BPTs).
Step By Step Guide on Making Money Staking for EGL
- Stake the desired number of ETH.
- the staked ETH is matched with 750m EGL for an equivalent EGL
- ETH plus EGL is sent to the Balancer pool
- Participants receive a local LP token (BPT in this case)plus additional Bonus EGL
After one week or 100,000 ETH threshold, the participants will receive their pro-rata BPT tokens and Bonus Voting EGLs. The participants can vote, specifying desired gas limit, weeks, amount as explained in this documentation. Both the Balancer token reward and Bonus Voting EGL will be locked for at least ten weeks. However, participants who vote for the first year of the genesis launch are eligible to share in the weekly EGL Voting Reward.
Step By Step Guide on Making Money Voting with EGL
- Vote; Users vote on the individual desired gas limit.
- Update desired gas limit using the revote function, which allows voters to update votes.
- The protocol calculates the desired gas limit and sets it for miners to follow the following week.
- Claim; voters claim rewards according to the EGL genesis contract. Also, mining pools that consent to the community gas limits claim EGL.
Mining Pool Consent
The EGL Genesis contract operates a carrot-only incentive. It doesn’t penalize mining pools for not consenting to gas-limit votes. It simply rewards mining pools for adjusting the gas limit according to the EGL holder’s desired gas limit.
Core Devs Guidance.
To compensate interested core devs for their efforts, they awarded EGL. Awarding interested devs is to motivate them to directly affect the EGL vote and signal to other actors their respective opinions.
How EGL Stabilizes Gas Fees for Ethereum based Projects.
Most promising projects like the Education Ecosystem are built on ethereum. However, the gas fee has become a turn-off. Even before the launch of Ethereum 2.0, the mass adoption of EGL where the community will be allowed to influence gas limits will future make ERC20 tokens like LEDU, cheapest and, most importantly, community-friendly.