67% of Ethereum Miners Reject EIP-1559

Expectedly, most Ethereum miners (67 percent) reject proposals under EIP-1559. Forwarded by Eric Conner and published together with Vitalik Buterin, this EIP's content seeks to overhaul the current first-auctioning system of which miners are in control of proceedings. Through this model, the network is technically overpaying for its security, raking Ethereum miners a fortune. Miners have thus far made over $250 million as payment for channeling hash rate, guaranteeing transaction integrity. However, this is at the expense of users currently overpaying to transact on the platform.

Details:

The Ethereum network is an evolution, an introduction that extended on what Bitcoin couldn't offer. Like it introduced smart contracting, Vitalik Buterin and the team are now seeking a temporary measure to address the high Gas fees. One of them is through EIP-1559, where miner revenue will drastically drop but for better user experience if adopted. The next upgrade, Berlin, will integrate five EIPs. However, London will introduce EIP-1559—if it garners support from mining pools and will in the medium term see Gas fees falling. In return, ETH/USD prices may inch higher in anticipation of more adoption, especially in the lucrative DeFi sub-sector.

Impact on ETH Prices:

Bearish. EIP-1559 will relieve the base layer and contribute to helping drive down Gas fees. Lower transaction costs will accelerate adoption andpump ETH/USD prices. Amid rising gas prices, some have been keeping off from using the network due to unreasonably high network fees that slash their bottom lines.

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