Ethereum clarifies Upcoming Merge Will Not Reduce The Amount Of Transaction Fees

The Ethereum Foundation has clarified that the upcoming upgrade, called “Merge”, will not reduce the amount of transaction fees.

- Advertisement -

Specifically, it was officially positioned as follows:

“Transaction charges are a product of network demand relative to network capacity. The ‘Merger’ removes the use of the proof of work mechanism and moves to the proof of participation mechanism for consent, but does not significantly change any parameters that directly affect network capacity or throughput.”

Ethereum Foundation

The “Merge” upgrade seeks to merge Ethereum’s existing mainnet with the new proof-of-participation consensus layer, the Beacon Chain and will therefore eliminate the need for ETH mining, saving energy.

The upgrade is expected to take shape in September 2022. While many investors and traders have purchased ETH in anticipation of the upgrade, “Merge”, some appear to have done so under the misconception that network capacity will increase once the upgrade is implemented.

About staking in Ethereum

Regarding staking on the Ethereum network, it is clarified that it is not possible to immediately withdraw ETH that has been staked on until the “Shanghai” upgrade is completed. However, ETH rewards to those who have staked will be immediately available.

Withdrawals from the validation program, once initiated, will have certain restrictions to avoid a potential liquidity crisis on the network.

The speed of transactions

Trading will also not be significantly faster after the “Merger”. However, APRs after the merger on the network are expected to increase by 50% compared to now to attract capital. Customer developers are currently working on a trial deadline of September 19 to complete the “Merge,” which is designed to have zero network downtime during the transition.

Previous Articles:

- Advertisement -

Latest

Uniswap (UNI) Rebounds Above $6 After Brief Uptrend Breakdown

Uniswap's UNI token dropped below its key uptrend line following a failed hold above the $6.00 support level.High trading volumes accompanied the decline, including...

Michael Saylor Invites Joe Rogan to Discuss Bitcoin on Podcast

Michael Saylor has shown interest in discussing Bitcoin on The Joe Rogan Experience podcast.The idea has generated excitement in the Bitcoin community, with some...

Congress Debates Stablecoin Bill Amid Rising Bank and Crypto Tensions

U.S. lawmakers are moving forward with the Senate Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, with debates set to resume after...

American Engineer Drugged, Robbed in Sophisticated London Crypto Heist

An American software engineer lost approximately $123,000 in cryptocurrency after being drugged and robbed in London.The victim was targeted by an impersonator posing as...

Max Keiser Doubts New Bitcoin Treasuries’ Discipline in Bear Market

Bitcoin-focused companies are increasingly copying the treasury strategy used by Michael Saylor's Strategy.Max Keiser raised doubts about whether these newer companies can maintain commitment...

Must Read

This is How to Buy and Sell Bitcoin

Now more than ever, there are a variety of ways to enter and exit the crypto market. While this is good, the availability of...