Ethereum EIP1559 Burner Deployment Set For July 14, ETH Goes Deflationary

Ethereum core developer Tim Beiko announced on April 23 that the highly anticipated London hard-fork and the included EIP1559 will likely go live by July 14. The EIP1559 upgrade will burn ETH tokens, relative to the fees generated on the network and will likely cause the ETH token to become deflationary i.e reduce supply by burning tokens.

The London hard-fork contains the token burning EIP1559, EIP3198 BASEFEE initiator, EIP3238 to delay Ice Age push-back and another EIP for gas fee refunds, which hasn’t been specified yet. Ethereum has been generating the highest amount of fees for any crypto protocol and now this fees will be used to burn/reduce the number of ETHs in circulation. Later, Ethereum 2.0 will follow and bring massive improvements.

Ethereum Fee Burn Visualized After EIP1559
Ethereum Fee Burn Visualized After EIP1559

The graph shows the amount of fees generated on the network and the amount of tokens EIP1559 would burn after it’s introduction. Relative to current fees, EIP1559 will burn around 6000-6500 ETH/day. This is likely to immensely boost ETH’s price, as more and more tokens are removed from circulating supply. The largest smart contracts platform in the world already has massive supply locked in Eth2 deposit contract, other smart contracts and DeFi protocols. It is being expected that ETH might be able to cross $5000 this summer, with some analysts hinting at even $10,000 per ETH figure.

About Ethereum 2.0

Ethereum 2.0 is the next big upgrade for the Ethereum network. It will bring Proof of Stake (POS), eWASM and sharding. It will reduce the resources, required to run the Ethereum network, as well as bring scalability and performance improvements.

The Eth2 upgrade will be implemented in three phases. The first Phase 0 Beacon Chain launched on Dec 01 ’20 and introduced the staking feature. This will be followed by the Phase 1 in Q1 2021, which will introduce sharding and allow data to be stored on shards, however transactions can’t still be processed.

The Phase 2 will make the Ethereum 2.0 truly complete and the network operational, after its introduction at some point in 2022. It will bring the Ethereum WebAssembly (eWASM) replacing the now operational Ethereum Virtual Machine (EVM). Only after the Phase 2 has been rolled out, proper execution of smart contracts and transactions can commence on the new Eth2 chain. The Eth1 and Eth2 chain will gradually merge with each other.

Ethereum EIP1559
Ethereum EIP1559© Cryptoticker

The post Ethereum EIP1559 Burner Deployment Set For July 14, ETH Goes Deflationary appeared first on CryptoTicker.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn

Follow Us

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
On Key

Related Posts

Bitcoin Price Prediction – Why did Bitcoin Price Crash?

The cryptocurrency market recently saw a huge spike in prices. Bitcoin, the leading cryptocurrency by market cap saw a rise of more than 10% in the past 7 days. Today on the other hand was a red day. The cryptocurrency market on an aggregate level lost around 4%. Most investors are already dreading their sudden

This Is Why Bitcoin Flash Crashed By 87% To $8,000 On Binance.US

Earlier today, the bitcoin price temporarily dove from $65,820 to a meager $8K on Binance.US, losing some mind-boggling 87% in value before making up those losses in the span of a single minute. Bitcoin Flash Crashes To $8K On Binance.US Bitcoin endured a violent correction on Thursday, but only for Binance’s exclusive United States cryptocurrency

Rich Dad Poor Dad Author Robert Kiyosaki Tells Why He Loves Bitcoin

Renowned Rich Dad Poor Dad author Kiyosaki loves bitcoin over fiat. Kiyosaki advocates for Bitcoin as a superior store of value to the dollar. Staggering debt will soon disqualify the dollar as a store of value. Robert Kiyosaki, the author of the famous book ‘Rich Dad Poor Dad’ says that he loves Bitcoin and distrusts