The show of strength that a group of Ethereum miners had planned to reject proposal EIP-1559 failed. All the miners protesting against the burning of fees would transfer their computing power to other networks.
A group of Ethereum miners had planned a show of strength to reject the burning of fees, but they did not succeed. These miners sought to demonstrate how much hash power was against the proposal, but the rest of the community approves it.
The idea of the protest was that all miners rejecting the EIP-1559 algorithm would transfer their computing power to the Ethermine pool. They aimed to prove all the strength of those demonstrating against the implementation of the improvement of the Ethereum network.
Despite the miners’ efforts, Ethermine’s hash rate just had a slight growth when the rally took place. In recent days, the group generated a computing power of 94 TH/s, which barely increased to only 96 TH/s.
This Group of Miners Are Against the Burning of Part of Their Rewards
The EIP-1559 improvement for the Ethereum network proposes better management of the high fees that have been suffocating users. It intends to establish a market base rate to include transactions in the blocks while adding tips to stimulate miners. After that, base costs will burn; thus, reducing supply inflation.
However, the implementation of the said algorithm encouraged the debate after several miners expressed their rejection. They considered that they would lose part of their rewards, which will burn as a result of the improvement proposal.
The Red Panda Mining Twitter account, where the call came from, recently invited Ethereum miners to mine the Ravencoin project. One user claims that he did so as the implementation of the EIP-1559 algorithm on the network will occur. This situation may lead some workers to search for other alternatives.
The High Cost of Transaction Fees on Ethereum
In recent days, the transaction fees on the Ethereum network have increased by 90%, according to data from Ycharts. This statistics service indicates that the average transaction fee on the network increased from USD 12.82 to USD 22.35.
The London hard fork, which includes the EIP-1559 protocol, will occur in July. It will introduce changes in how to manage fees based on fixed rates rather than in an auction system like the current one.
Some people view the algorithm optimistically, considering it a deflationary mechanism. They believe that it will lead to driving the price of the Ether (ETH) cryptocurrency higher, but others see it unfavorably.
The Berlin hard fork, which will occur on April 14th, will introduce an algorithm to redefine the gas prices of a transaction. This event will include other improvement proposals such as the protection of the network against Denial of Service (DoS) attacks. All these changes are part of the main steps for Ethereum’s transition from the current Proof of Work (PoW) consensus to a Proof of Stake (PoS) model.
At the time of writing this article, Ether is trading at around USD 2,100 while Bitcoin’s price is around 59,000. Regarding the latter, it proves that it is still the best option for those who want to enter the cryptocurrency market.
By Alexander Salazar