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

Ethereum Price is about to crash further if THIS happens!

The crypto market is still consolidating after the crypto crash. In the last couple of days, many day traders took advantage of this consolidation and bought cryptos in their respective support areas. For Ethereum, traders worry that prices risk crashing and slipping below the current support area. Will Ethereum crash down or will Ethereum rebound

Monero Is Preparing for a Bull Run; Should You Buy XMR Now?

Monero is a decentralized cryptocurrency that mainly focuses on anonymity during transactions. It has three parts- Ring Signature, RingCT, and Stealth address. The Ring Signature hides the sender, RingCT hides the amount, and the Stealth address makes the receiver anonymous. XMR is the native coin of this network, which is used during the transaction. First,

SEC Files an Extension: How Will It Impact the Price of XRP?

Ripple is a decentralized digital payment platform that runs on RippleNet. Most large cryptocurrencies face issues regarding scalability and slow transactions. Ripple comes with the solution by providing a real-time gross settlement system. It enables transactions to any digital coins. It was created to make the decentralized financial transaction scalable and affordable.  After the US

Illuvium Expands Its Chainlink Integration With Price Feeds

Illuvium recently announced an expansion to its Chainlink Integration by including Price Feeds. With the integration, Illuvium will help users accurately price digital lands whether they are transacting in ETH or sILV2. The land is an integral component of Illuvium Zero. Customers who possess land can create valuable tokens and fuel, and the ERC 20