EIP-1559 is almost here, and a lot of people are talking about it.
The London Hard fork will be live sometime around August 4th, according to sources. This will burn some ETH with every transaction, making less ETH available.
ETH will now have a deflationary mechanism at work to counter some of the inflationary pressure it faces currently, but deflationary mechanisms like this can lead to excessive hoarding of any currency.
Could this be a great summer for ETH? This is what supporters of ETH are saying:
Talk of an #Ethereum flippening gathers pace as the London hard fork is scheduled for roll out in the coming weeks.
— PrimeXBT (@PrimeXBT) July 6, 2021
Man, $eth is really showing some character atm. One of the very few green cryptos last 24 hours, up 15% the last week.
Is London Hard Fork starting to impact the price? They better deliver.
— kahvile (@kahvile) June 30, 2021
Decrypt framed this latest development nicely:
The next update to the Ethereum blockchain, which calls for changing how ETH is paid out to miners, is likely to come on August 4 with block 12,965,000—not mid-July as earlier suggested.
That block number was officially proposed today on Github by developer Tim Beiko, the Ethereum Foundation’s point person on network upgrades. If various Ethereum client teams—the groups who code the various software onramps to the blockchain—agree to the proposal, that target will become official.
The date gives the multiple test networks enough time to finish completing the integration and, hopefully, ensuring there are no problems with the code. An error with the previous hard fork, in April, led to about 12% of computers on the blockchain temporarily being unable to sync to the network.
Yep, unless someone objects in the next 24h, London should land on August 4th.
A few client teams have "👍'd" it already, but we want to be sure no one has a serious objection.
Keep an eye out 👀 https://t.co/KWRCvyrWR1
— Tim Beiko | timbeiko.eth 🦇🔊 (@TimBeiko) July 6, 2021
The #Ethereum “London” hard fork is scheduled for July. It introduces changes such as more predictable transaction costs and a burn mechanism to increase scarcity. Is this the start of surpassing Bitcoin in terms of market capitalization? pic.twitter.com/auPodklAHo
— PrimeXBT Academy (@PX_Academy) July 6, 2021
Coin Desk had more details:
The protocol update includes five Ethereum Improvement Proposals (EIPs), most notably EIP 1559 and EIP 3554, that aim to counter various inefficiencies:
EIP 1559 introduces a new fee structure to make Ethereum less inflationary. This protocol change is highly controversial because it aims to burn part of fees hence decreasing miner revenue.
EIP 3554 delays Ethereum’s difficulty bomb to Dec. 1. This mechanism will incrementally increase the difficulty of mining on the Ethereum network, effectively “freezing” proof of work in preparation for Ethereum’s move to proof of stake.
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