A long-awaited update to the Ethereum network, which may cause ETH to become a deflationary asset, is now slated for July in London..TO
The main developer of Ethereum, Tim BeikoI had already expected the decision to be made today, two weeks ago, and proposed to include the core of the company in the call for proposals for developers. There were no oral objections.
“We have come to a point where the EIP is strong”Said Beiko when he called. “[…] We’re at a point I think in which it is ready to be included in an update. “
The proposal co-authored by the co-founder of Ethereum, Vitalik Buterin, This removes Ethereum’s fee structure from a bidding system that allows miners to prioritize the highest bids. The new structure Dynamically and programmatically adjust rates so that users only pay the lowest bid for each block.
What’s more The network base rate is now “burned”. with every transactionwhich could lead to a deflationary money economy for ETH.
The proposal was largely anticipated by almost all members of the Ethereum community, including investors, speculators, and regular network users. This was the result of an analysis of network transactions over the past year EIP-1559 would have burned 1 million ethers in 365 daysEarlier this month, research by ETF issuer Grayscale concluded that a deflationary mechanic will be a boon to the price of ether. Creating a positive price feedback cycle.
For months, users have also been complaining about gas pricesand there have been some notable examples of sky high fees for simple transactions, including a $ 36,000 uniswap swap.
One notable group less enthusiastic about the proposal is the Ethereum miners.There were threats with a hard fork and an alternative suggestion, and Some estimates assume that miners will lose 50% of their income. Ultimately, however The proposal goes further and puts an end to “selfish” mining practices.