EIP (Ethereum Improvement Protocol)

These proposals form a core part of Ethereum’s governance procedures. Since Ethereum’s development is not directed by a company, it instead relies on a system of community votes to arrive at a consensus and direct development. EIPs give the community a way to formally suggest new features for the protocol, as well as to vote on suggestions put forward by other members.

This process takes some time by design. It begins with a draft proposal, which then passes through a phase of community review and debate. Researchers and developers assess its viability, while community members are invited to discuss its merits and shortcomings. Each proposal can go through several rounds of revision and debate before either progressing or failing.

Proposals that pass the process, as well as a subsequent technical review, can be scheduled into a network upgrade.

This process has resulted in some notable upgrades for Ethereum since its inception. For example, EIP-1559 changed the network’s fee mechanism, introducing token burns and more predictable pricing. EIP-4844 lowered the costs for L2 rollup networks with a cheaper data format called blobs. This process of consistent upgrades has allowed Ethereum to stay competitive as the blockchain technology evolved.

EIPs can sometimes be confused with ERCs (Ethereum Requests for Comment). The latter defines application-level standards, such as token behaviors, and is a subcategory of EIP. ERC-20, which governs how tokens function on Ethereum, and ERC-721, which does the same for NFTs, are two examples.