The Formula One Commission, formed by F1, the FIA and the teams, met on Thursday to reach a series of agreements, including on freezing engines from 2022.
The agreement was unanimous and allows firms to no longer need to invest in development, with Red Bull having Honda engines, and the team being the biggest beneficiaries of the move.
In theory, the duration of the freeze will be until 2025, though the move was opposed by Renault.
The idea behind the freeze was to create a balanced system, allowing for new teams to start 2022 on a level playing field.
Another major agreement allowed for sprint races on Saturdays with races of just 100 kilometres for half the points and valid for the grid on Sundays.
Money was crucial in this agreement, given that 28 of the 30 votes must be in agreement, with 10 votes each for the FIA and commercial rights holders of the F1, and then one vote per team.
Traditional qualifying will now take place on Fridays, with only two sessions of one hour, during the three sprint race tests in Canada, Italy and Brazil.