Loading cryptocurrency prices...

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.

- Advertisement -

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 News

Amazon (AMZN) Shares Rally to Record High After Q3 Earnings Exceed Expectations

Amazon stock reached a new all-time high after surpassing earnings expectations in the latest...

Strategy Expands Bitcoin-Backed Credit Globally, Beats Q3 Estimates

Strategy plans to grow its digital credit business internationally, focusing on Bitcoin-backed credit products. The...

Europe Opens First IBM Quantum Data Center Amid Bitcoin Quantum Threats

The Bitcoin white paper marking the start of Bitcoin was published 17 years ago...

Coinbase Q3 Earnings Beat with Mixed Analyst Price Targets

Coinbase reported better-than-expected third-quarter earnings with $1.05 billion in transaction revenue and $801 million...

What Will Its Location Be in 20 Years?

Bitcoin Whitepaper Day marks the creation of Bitcoin as an alternative to traditional money...
- Advertisement -

Must Read

9 Best Books On Ethereum And Blockchain Technology

QUICK LINKSHow to Choose Your First Blockchain Book: A Simple Framework1. Define Your Goal: Are you looking to Build, Invest, or Understand?2. Assess Your...