ETH Proposal Aims to Raise Gas Limit Ceiling From 36M to 3.6B Units, Supercharging Transaction Capacity

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Ethereum could soon undergo one of its most significant throughput upgrades in years, thanks to a bold new proposal that aims to dramatically expand the network’s transaction capacity. Ethereum Improvement Proposal (EIP) 9698, introduced by Ethereum Foundation researcher Dankrad Feist, suggests an automated and predictable increase in the blockchain’s gas limit over a four-year period—potentially boosting transaction speeds from the current 15–20 transactions per second (TPS) to an estimated 2,000 TPS.

This isn't just a technical tweak—it's a strategic move to future-proof Ethereum’s Layer 1 against growing competition from faster, cheaper blockchains. As decentralized finance (DeFi), NFTs, and on-chain applications continue to evolve, scalability remains a top priority for Ethereum developers and users alike.


Understanding EIP-9698: A Predictable Path to Higher Throughput

At the heart of EIP-9698 is a simple yet powerful idea: replace the current decentralized, operator-driven gas limit voting mechanism with a deterministic exponential growth schedule built directly into client software defaults.

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Currently, Ethereum’s gas limit is adjusted manually by validators who vote on increases or decreases based on network conditions. While this system offers flexibility, it often results in stagnation due to risk aversion or lack of coordination. The result? Slower adoption of higher throughput capabilities even as hardware and protocol efficiencies improve.

EIP-9698 proposes changing that by baking in a gradual, automatic increase in the gas limit every epoch—approximately every 6.4 minutes. This method ensures that the network can scale in alignment with technological progress without requiring disruptive hard forks or manual consensus.

The target: raising the gas limit ceiling from 36 million units to 3.6 billion, a 100-fold increase over four years.

If implemented, this would allow each block to process up to 6,000 simple transfers, dramatically improving overall network performance and paving the way for mass adoption.


Why This Matters: Competing in a Crowded Blockchain Landscape

Ethereum has long been the leading platform for smart contracts and decentralized applications. However, it faces increasing pressure from alternative Layer 1 blockchains like Solana, Avalanche, and Base, which offer faster transaction finality and lower fees.

User migration to these networks has accelerated during periods of high congestion on Ethereum, especially during NFT mints or major DeFi launches. High gas fees and slow confirmation times have become pain points—even with the success of Layer 2 rollups like Arbitrum and Optimism.

By proactively increasing the gas limit at the base layer, Ethereum aims to:

“This proposal aligns the gas limit trajectory with expected advancements in hardware and protocol efficiency,” Feist wrote in the GitHub documentation. “It encourages sustainable growth without sacrificing decentralization.”


Technical Details: How the Upgrade Would Work

The activation point for EIP-9698 is set at Beacon-chain epoch 369017, expected around June 1, 2025. Unlike previous major upgrades, this change does not require a hard fork. Instead, client teams (such as Geth, Nethermind, and Teku) would simply include the new default setting in their software releases.

Once enabled:

This approach gives node operators time to upgrade infrastructure gradually while avoiding sudden spikes in resource demands that could threaten decentralization.

Importantly, the proposal doesn’t mandate participation—only sets a default path. This preserves Ethereum’s ethos of permissionless innovation and operator autonomy while guiding the network toward higher performance.


Frequently Asked Questions (FAQ)

Q: What is the gas limit in Ethereum?
A: The gas limit is the maximum amount of computational work a block can handle. It determines how many transactions can fit into a single block. Higher gas limits mean more transactions per second.

Q: Will this make Ethereum less decentralized?
A: Not necessarily. By using a slow, predictable increase schedule, EIP-9698 allows node operators to scale their hardware incrementally. Manual overrides also ensure validators retain control.

Q: Does this replace Layer 2 scaling solutions?
A: No. This upgrade enhances Layer 1 capacity but doesn’t eliminate the need for Layer 2 rollups, which remain essential for ultra-low-cost transactions and massive scalability.

Q: Is there a risk of network instability?
A: The risk is minimized through gradual implementation. Since changes occur incrementally every epoch, issues can be detected and addressed before they escalate.

Q: Do I need to do anything as a user or validator?
A: Most users won’t notice any changes. Validators who wish to run nodes should monitor client updates and ensure their systems meet evolving hardware requirements over time.

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Looking Ahead: What Success Looks Like by 2029

If EIP-9698 is adopted and progresses as planned, Ethereum’s throughput could see exponential growth by 2029. With a projected gas limit of 3.6 billion units, the network may support complex dApps natively on Layer 1 without relying solely on rollups for performance.

This doesn’t mean Layer 2s become obsolete—they’ll continue playing a crucial role in niche use cases requiring near-zero fees. But having greater base-layer capacity gives developers more flexibility and reduces bottlenecks during high-demand events.

Moreover, this kind of forward-thinking governance model—where upgrades are pre-programmed and predictable—could set a precedent for future protocol improvements across other blockchain ecosystems.

As Shaurya Malwa, a leading analyst in crypto derivatives and DeFi, noted: “Scalability isn’t just about speed—it’s about sustainability, predictability, and trustless coordination.”


Final Thoughts

EIP-9698 represents more than just a technical adjustment—it’s a statement about Ethereum’s long-term vision. By embracing automated, exponential growth in its gas limit, the network signals confidence in its ability to evolve alongside advancing technology while preserving decentralization.

While challenges remain—especially around node operation costs and security trade-offs—the proposal marks a proactive step toward making Ethereum faster, more efficient, and ready for the next wave of global adoption.

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