Vitalik Buterin Addresses Ethereum’s Gas Challenges with “Multidimensional” Fee Structure

Despite solidly planting itself as one of the best blockchains today, Ethereum has not been able to overcome or outrun its bane, outrageous gas fees on the network

Despite having solidly planted itself as one of the best blockchains available today, Ethereum has not been able to overcome or outrun its lingering bane: outrageous gas fees on the network.

In steadily building towards its proof-of-stake transition, there has been a barrage of developments on the Ethereum network, with many looking to finally put an end to the gas crisis. On this note, Ethereum implemented EIP-1559 in August 2021, but it failed to meet expectations.

Buterin Proposes a Multidimensional EIP-1559

In the original EIP-1559 implemented on the Ethereum network, all resources are bundled into a “single multidimensional resource.” However, because different resources have different requirements, Ethereum gas fees are usually sub-optimal.


This happens because some resources require more processing power than others, these resources therefore naturally incur higher gas fees. However, because resources are all bundled together, smaller resources also ended up with exorbitant gas fees.

To solve this problem, Ethereum Co-Founder Vitalik Buterin has proposed an improvement to the network’s current pricing structure, a “Multidimensional EIP-1559.” 

Buterin laid out two options for the network. The first solution Buterin proposed involves calculating the gas cost for resources individually. This would be done by dividing the base fee for one unit of the resource by the base gas fee.


The second option would involve setting a base fee for using resources, however, burst (high demand) gas limits would be affixed to each resource, rather than having a base level, as in the first solution. Priority fees would also be based on a percentage instead of being fixed.

On the Flipside

  • There have been concerns about the implementation of a multidimensional fee structure on Ethereum as it is a “significant engineering undertaking.”

Why You Should Care

Fixing the challenge of gas fees on the network would be a major milestone for Ethereum as it prepares for its PoS transition

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia