Posted 1 month ago | by @devadmin
The long-awaited upgrade to the Ethereum network EIP1559 entitled: “Proposal to include EIP-3238 (diff bomb) in London #256″ will result in ETH becoming a deflationary asset in July, codenamed the “London” hard fork.
Ethereum’s lead developer Tim Beiko proposed the inclusion on an Ethereum Core Developers call. There were no objections from the developers, but miners themselves seem to be up and arms about the proposal even threatening to hard fork ETH and proposing other proposals. Besides miners, the Ethereum community, including investors, speculators, and regular users of the network seem to be in favor of the new proposal.
“We’re in a spot where the EIP is sound,” said Beiko on the call. “We’re in a spot, I think, where it’s ready to be included in an upgrade.”
The proposal, which is co-authored by Ethereum cofounder Vitalik Buterin, will shift Ethereum’s fee structure away from a bidding module to a new fee structure that will dynamically and programmatically adjust fees enabling users to pay the lowest bid for each block.
Additionally, the base network fee will now be “burned” on each transaction, potentially leading to deflationary token economics for ETH.
As Cointelegraph reported, an analysis of network transactions last year found that EIP-1559 would have burned 1 million Ether over the course of 365 days — almost 1% of the network. Further, to showcase the brevity of this problem, the total mining revenue surpassed a record $1.3 billion in February, with some 50% coming from fees alone, according to Coin Metrics.
In addition to the proposed burning of Ethereum fees, and shift from bidding structure. A difficulty bomb will be set on the Ethereum network which is delayed known as “Ice Age.” At least five other EIPs are likely to join EIP 1559 in the London hard fork. The difficulty bomb will incrementally increase the difficulty of mining on the Ethereum network as mining is phased out for proof of stake with ETH 2.0. CoinDesk reported, Geth team lead Péter Szilágyi stated that pairing EIP 1559 with the mining difficulty increase helped ensure no one would fork Ethereum at that time without having to undergo numerous technical hurdles.
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Etnereum is currently trading at [FIAT: $1,719.71] UP +3.7% in the last 24 hours according to Coingecko at the time of this report.