• bitcoinBitcoin$63,624.00-0.02%
  • ethereumEthereum$3,051.09-0.69%
  • elrond-erd-2MultiversX$40.920.16%

Ethereum Miners Redirect Hash-Power Against EIP-1559

Several Ethereum miners are showing their opposition to the impending implementation of EIP-1559. Following protests regarding the increasing Ethereum fees, the Ethereum Improvement Proposal wants to replace the current bidding-based fee market with a fixed burn mechanism and price.

But EIP-1559, which is scheduled to be launched in July, will have a pretty big impact on miners’ revenue, with some predicting that they may lose up to 50% of their profits.

To draw attention to their opposition, several Ether miners now plan a 51-hour show of force for the first day of April. They plan to direct their hash rate to the 1559-opposed pool, Ethermine, for 51 hours, starting April 1st. Some believe they may harness over 51% of the hash rate.

If they prove to have success, the pool would have enough mining power to make unilateral changes to the protocol of the network.

Bits Be Trippin’, a popular YouTuber, streamed a video on March 9th, where he talked about the hash-power redirect and described it as a “show of force.”

“Part of the risk display here is not to attack the network, it’s to show that force projection is possible.”

The YouTuber claims “there’s no incentive” for them to attack the network via Ethermine.

“What it is showing is that if you have a misalignment of incentives, you can get the network into a position where a would-be attacker could put a price point out there, pay a lot more for that hash power that just got kicked off, and now you have a situation where you could have a double-spend or a block reorg,” he commented.

However, some Ethereum proponents, who aren’t miners, are happy with the new EIP-1599. Not only it would keep the fees under control, but it could also lower the Ether supply. Vitalik Buterin, Ethereum co-founder and EIP-1599 co-author, declared:

“If the demand to use Ethereum is high enough, then there would actually be more ETH being destroyed than is being created. And so the joke that I would sometimes make is, if Bitcoin knows if fixed supply is sound money, then if you have a decreasing supply, does that make us some ultrasound money?”
Previous articleNext article

Leave a Reply

Your email address will not be published. Required fields are marked *