Ethereum miners will hold a rally against EIP-1559

by in Cryptocurrency News

EIP-1559

On April 1, miners on the Ethereum network will pool the hashrate in the Ethermine pool, which opposes the implementation of the EIP-1559 proposal. The promotion will last 51 hours.

EIP-1559 aims to replace the existing bid-based fee market with a fixed price and incineration mechanism. The offer will be part of the London hard fork planned for July.

In February, Ethereum miners' revenues from transaction validation jumped 122.1% compared to January. The share of commissions received was 52.9% of total revenue, which reached a record $ 1.36 billion.

EIP-1559 divided mining pools into two camps. Ethermine and SparkPool opposed it, which together with several other participants provide 60% of the network hashrate.

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"For educational purposes" opponents of the proposal plan to channel computing power into Ethermine. If they manage to collect more than 51% of the hash rate, then hypothetically, miners will be able to make one-way changes to the protocol.

“This is a demonstration of the strength and ability of miners to coordinate actions, and not a willingness to attack the network, there is no such task. This is a demonstration of a situation where a potential attacker will raise a price question. He can rent large amounts of hashrate and create the risk of re-spending or reorganization of blocks,” explained Michael Carter, creator of the mining blog Bits Be Trippin.

Supporters of EIP-1559 believe that its implementation could reduce the overall market supply of Ethereum and, as a result, lead to an increase in the price of the coin.

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“If demand is high enough, in fact, more Ethereum will be destroyed than created. I sometimes joke: if bitcoin with its limited emission is a stable currency, will this apply to us in the event of a declining supply? ”Asked Vitalik Buterin, co-founder of the second-largest cryptocurrency by capitalization.