Author: Zsolt Felfoldi (zsfelfoldi@ethereum.org)
This proposal describes an EIP-1559 compatible priority fee suggestion scheme that can be considered a generalization of the current "gas price oracle" implemented in Geth. We define minReward for each block so that it is either the smallest effective miner reward paid in a given block or a low (user specified, cca 5-10%) percentile of tx miner rewards in ascending order, weighted by gas used. The latter option is slightly more complex to calculate but also more reliable because it can't be distorted by miner created transactions where the paid priority fee is not really meaningful.
Instead of suggesting a single priority fee value based on the minReward of a fixed number of recent blocks, this scheme has a positive integer parameter i which means the API can choose to display a series of values which might also be more informative to the user. Using a single value of i is also possible, a value of 3 or 4 yields a behavior similar to the current GPO.
