What is Ethereum Improvement Proposal (EIP)?

An Ethereum Improvement Proposal (EIP) is a mechanism used by the Ethereum network to propose new features and processes that help determine the direction of the Ethereum network. EIPs are an important part of Ethereum's governance system and act as a source of truth for the Ethereum community. They are typically used to amend technical specifications of the Ethereum network, and consist of upgrades and standards that are discussed by the Ethereum development community and the Ethereum Foundation. EIPs go through a rigorous finalization and auditing process to determine if they are in the best interest of the Ethereum project long-term.