If you've ever used a decentralized exchange like Uniswap, you've probably experienced the frustration of the two-step dance: first approve the contract to spend your tokens, then execute the actual swap. What if I told you there's a proposal that could eliminate this clunky process entirely while also enabling gasless transactions? Enter EIP-5806.

What is an EIP?

Before diving into EIP-5806, let's understand what EIPs are and why they matter.

An EIP (Ethereum Improvement Proposal) is essentially Ethereum's way of proposing, discussing, and implementing changes to the network. Think of it as a formal design document that:

Proposes new features for the Ethereum platform
Collects community feedback on specific issues
Documents important design decisions in Ethereum's development

Types of EIPs

EIPs come in several flavors:

Standards Track EIPs affect most Ethereum implementations and include:

Core: Changes requiring consensus (like EIP-1559's fee mechanism)
Networking: Network protocol improvements
Interface: Client API/RPC specifications
ERC: Application-level standards (think ERC-20 tokens, ERC-721 NFTs)

Informational EIPs provide guidelines without proposing new features.

Meta EIPs describe processes or propose changes to existing processes.

The EIP Lifecycle

Every EIP follows a structured path:

Idea/Proposal: Initial discussion in community forums
Draft: Formal proposal submitted to the EIPs repository
Review: Community and developer feedback and iteration
Last Call: Final review period (minimum 2 weeks)
Final: Accepted and scheduled for implementation

The Problem: ERC-20's UX Nightmare

Now, let's talk about why EIP-5806 exists. The culprit? The beloved but flawed ERC-20 token standard.

The Two-Step Problem

When you want to use your tokens with a smart contract (like trading on a DEX), ERC-20 forces you through this process:

Approve: Send a transaction giving the contract permission to spend your tokens
Execute: Send another transaction to actually perform the desired action

This creates several pain points:

Poor User Experience: Two separate transactions for one logical action? That's confusing and slow.

Wasted Gas: You're paying transaction fees twice for what should be a single operation.

Security Risks: To avoid repeated approvals, many dApps ask for "infinite" allowances. If that contract gets hacked, all your tokens of that type could be drained.

Onboarding Friction: New users need ETH for gas even if they only hold stablecoins, creating a significant barrier to entry.

EIP-5806: Delegate Transactions

EIP-5806 proposes a revolutionary solution that eliminates these problems through off-chain signatures and delegation.

How It Works: The Magic of DELEGATECALL

Here's the technical flow that makes the magic happen:

Step 1: Create a Signed Delegation (Off-Chain)

Instead of sending an approve transaction, your wallet creates a standardized message containing:

The delegate (contract receiving permission)
The target (token contract)
The calldata (specific action to perform)

You sign this message with your private key. This step is instant, off-chain, and costs zero gas.

Step 2: Execute via a Relayer (On-Chain)

A relayer (could be the dApp's backend or a third-party service) takes your signed message and submits it to the EIP-5806 handler contract in a single transaction. The relayer pays the gas fee, not you.

Step 3: On-Chain Verification and Execution

The handler contract:

Verifies your signature using ecrecover
Uses DELEGATECALL to execute your specified action
The magic: DELEGATECALL makes it appear as if you sent the transaction directly

The Beautiful Result

When the token contract receives the call, it sees you as the sender, not the relayer or handler. Since you're always authorized to transfer your own tokens, the call succeeds without any prior approval.

One signature. One transaction. Gasless for the user.

Why This Changes Everything

EIP-5806 doesn't just fix the approve/transferFrom problem—it opens the door to:

Gasless Transactions

Users can interact with dApps without holding ETH. Relayers can sponsor transactions, removing a major onboarding barrier.

Better Security

No more infinite approvals. Each action is explicitly authorized through a signature, reducing the attack surface.

Improved UX

Complex multi-step processes become single-click interactions. The user experience becomes as smooth as Web2 while maintaining Web3's security and decentralization.

Developer Innovation

Developers can build more intuitive applications without worrying about the friction of the approve/transferFrom pattern.

The Road Ahead

EIP-5806 represents a significant step toward making Ethereum more user-friendly without sacrificing security or decentralization. By leveraging cryptographic signatures and clever use of DELEGATECALL, it solves real problems that affect millions of users daily.

While the proposal is still making its way through the EIP process, the potential impact is enormous. We're looking at a future where:

New users can start using DeFi without first acquiring ETH
Every token interaction becomes a single-click experience
Security risks from infinite approvals become a thing of the past

Understanding EIP-5806