A few days ago Vitalik Buterin announced that Ethereum 2.0 was ready to undergo its first hard fork with major changes. One of them concerns the management of transaction fees, the volatility of which will be reduced by the implementation of EIP-1559. While it will be operational from next July, the update is already controversial, especially among minors who are far from being satisfied with this choice.
EIP-1559 will have a positive effect on the value of ETH in the long term
Currently, any transaction made on Ethereum involves fees that are paid to minors for processing. The amount of these costs is set according to the principle of supply and demand and is likely to reach peaks in the event of a bottleneck in the network. To put an end to this escalation, the EIP-1559 will set up a standard rate which will change depending on the market condition. Instead of minors, it will therefore be the network which will henceforth set the price of transactions. with the particularity that these will be burned once received.
CEO of the infrastructure company Ethereum Staked, Tim Ogilvie welcomed the future application of this formula which would put an end to the era of exorbitant tariffs. It also sends a positive signal in that the network would no longer be perceived as intended for a single class, namely that of the rich. In addition to accessibility to the network, which will be improved, Mr. Ogilvie adds that the implementation of EIP-1559 will have a positive impact on the value of ETH in the long term.. Indeed, one of the direct consequences of the management that will be made of the fees received is that ETH will become rare on the market.Subscribe for freeJoin our community of Bitcoin and crypto-currency enthusiastsEmail * Validate
Should we fear a miners’ strike?
By burning the fees that miners will be deprived of, the team behind this update inevitably angered miners. With 26% of the hashrate under its control, Spark Pool has already opposed this update as has Ethermine.org which controls 21.8% of traffic. For Oglivia, there is no doubt that we are heading for a long standoff during which the miners will defend their positions to the end.
“I don’t think the miners will be long term winners here. I think they will fight. But I think there will be losers in the long run. I think it’s almost existential for a mining company. And so I think they’re going to take the strongest action possible. How far are they prepared to go? I can’t really predict it. But I think you’ll see them fight real hard ” did he declare.
In the event of a miners’ strike, Ethereum may therefore find itself with another major problem on its hands and not the least. Vitalik Buterin and his team should remember now that you can’t make an omelet without breaking the eggs.
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The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.