The Ethereum Eagle Project (EGL)
EGL is a community led effort to solve the misalignment of incentives and lack of transparency between the community (e.g. users, core devs, DApps) and miners in the Ethereum ecosystem. Our primary focus is to align incentives and enable coordination between the community and miners in a way that maximizes value for all Ethereum stakeholders.
Following in the footsteps of Flashbots, this effort builds upon the phenomenon of community initiatives focused on tackling protocol level attributes without requiring a protocol change.
Specifically, EGL introduces a coordination token to allow holders to vote on what their individual desired Ethereum Gas Limit is, and reward miners (pools) for listening to the community and user preferences.
Mining pools control the block gas limit and their incentives for determining the "right" gas limit are different than the community's and they may not know what the "right" limit . Concurrently, the community (users) rant on Twitter about "fees being too high" but they have no mechanism to affect it. EGL aims to solve this coordination problem between miners and users.
All ETH holders ought to care about the block gas limit because it directly affects Ethereum's throughput (TPS/scalability) and user transaction fees. This is because the gas limit sets the block's transaction supply (i.e. how many transactions can fit in a block) and thus the transaction fee auction.
EGL's design is simple, yet elegant.
EGL holders vote on what their individual desired Ethereum block gas limit is, and rewards miners for listening to the community and user preferences. Additionally, EGL creates an economic incentive for the community to research, vote and ultimately discover what the “economically efficient” gas limit is and rewards mining pools for listening and taking the economic risk of listening to them.
EGL builds on Ethereum’s experiment of moving some parameters away from core devs to miners, by giving some of that power back to not only core devs, but also the entire community.
Key Insight: on-chain voting tokens are nothing new, yet EGL’s novelty lies in:
- Identifying that pools can be incentivized with EGLs to take into consideration the ecosystem’s preference.
- Bootstrapping EGLs using Balancer to spin the flywheel