The EIP-1559 is a network upgrade that tries to send a small portion of the fee associated with all ETH transactions directly to the network. The chips will then be burned, reducing the total number of coins in circulation at that point. As a result of this proposal, many expect that the existing scalability problems and Ethereum transaction fees will be substantially alleviated.
If EIP-1559 is launched, it will have a significant impact on the overall yields of Ether miners. It is said that, as a result of the proposal, miners’ profits may fall by an incredible 50%, which partly explains why so many miners are opposed to its implementation and even advocated demonstrative network takeover, potentially compromising network security.
However, to help ease growing tensions between the Ethereum community, the ETH development community has proposed the adoption of EIP-3368. Proposal States that instead of immediately deducting block remuneration, they should be maintained at 3 ETH for the time being, in order to gradually reduce them to around 1 ETH over the next 24 months.
While the EIP-3368 was introduced as a means of cooling the ignition voltage among Ethereum’s miners and developers, they appear to have received little or no support, with most miners still at a dead end with the altcoin development team.
Kirill Kuznetsov, chief developer of the 1-inch DeFi aggregator, told Cointelegraph that the upcoming EIP-1559 is indeed putting miners in the wrong place by severely limiting their commission quotas to a maximum, adding: “Deflation will not match the amount of commission lost after an upgrade; miners therefore earn several times less and may not even be able to pay their computing costs. “
However, Kuznetsov believes that while the miners have their own truth, so do the developers, with each side looking for their best interests: “The former cares about their earnings, the latter cares about their performance and the UX network. But without the first, the second will not be needed, so there must be some agreement. “
Grim Reaper, the pseudonymous founder of Pylon. Finance – one of the largest ETH mining operations in the United States – told Cointelegraph that both a miner and a developer understood the plight of both sides and emphasized the fact that ETH miners usually had to wait three to five years to settle, which hurt all the more. considering that they have been building an ecosystem for years.
In addition, because most miners planned their future earnings based on the current system, they believe that a major switch like the EIP-1559 will take everything away from those miners who have built their entire lives on this unique activity, adding:
“As a developer, I see its need because it helps users get involved, because only rich people can shop when gas is high.” This narrowing of growth when the market peaks. I do not think that this EIP will solve the problem outside of standardizing transaction costs. “
He also believed that if the proposal came into force, the number of transactions taking place on the network would increase significantly – due to the new found availability of ETH – which in turn would cause many congestion problems, putting miners in a position to hash more or less and leave the problem overload really unresolved.
While specialists look forward to a deflationary future and developers look forward to reduced transaction costs, Grim Reaper believes that the core of the problem – ie congestion – will not change in the slightest with the implementation of EIP-1559. “The guillotine falls on the miner and Vitalik seems to have real solutions,” he said.
Buterin proposes “band-aid” solution
In response to the aforementioned protest by the miners, Vitalik Buterin, co-founder of Ethereum, and other major developers of the network association attacked, claiming that strengthened their efforts launching some minor modifications to the existing Ethereum proof-of-work framework and Beacon Chain clients. Not only that, a recent blog established:
“Like the watch, the Ethereum community quickly organized a potential solution to this possible 51% attack.” Vitalik describes how Ethereum can make a “quick merger” with a quick transition from proof-of-work to proof-of-stake with the limited changes required for Ethereum’s clients. “
Kuznetsov, who is considering this issue, believes that the changes proposed by Buterin et al. preventing a potential 51% attack can be considered a temporary fix at best. Even in the event of an attack, however, he pointed out that the development team will most likely transfer the network to Ethereum 2.0 as soon as possible. “The best mining funds have no reason to cheat the network – ie to send invalid blocks,” he said.
Are the miners to blame?
While most people seem to sympathize with the plight of the ether mining community, Red, the pseudonymous moderator of Harvest Finance, a revenue aggregator, warned Cointelegraph that what miners are currently doing is similar to a famous documentary. Who killed the electric car?, addition:
“Just as there has been a concerted effort in the oil / automotive industry to derail any attempt to move toward electric vehicles, which would dramatically affect their profit margins and automotive monopolies, Ethereum miners are trying to do the same – protect their cash cow in any way impact on the ecosystem or on the end user. “
Alexi Lane, a spokeswoman for Ethplorer – an ethereum analytics platform – believes that from the outside, it is clear that ETH miners do not want to lose their profits, even at the cost of the network’s demise. In his opinion, the miners simply want to make the most of what they can do right now, but hopefully there will be a solution in the near future.
Finally, Grim Reaper believes that another looming reality that may loom on the horizon is that if no one is able to reach any consensus, ETH could be difficult to discern. “The real problem is the shit storm that comes when the ETH splits and the miners go to war.” That absolutely sucks out what’s going on with DeFi, “he said.
March was quite busy for the Ethereum ecosystem, albeit for the wrong reasons. For example, on March 7, the Ether line (ETH) miners from all over the world met to express their displeasure with a forthcoming proposal to improve the ethereum 1559, which is to be launched sometime in July.