Ethereum Miners Likely to Reject A New Fee Proposal
A survey indicates that Ethereum miners will likely reject EIP 1559 looks to replace the current fee auction system with a flat base fee and a small tip as miner compensation. The proposal was first forwarded by Vitalik Buterin in 2018.
Ethereum is plagued by high fees. Presently, developers are working to resolve the network scalability with hopes of relieving the base layer which in turn might help reduce transaction fees. Miners play a big role in all Proof-of-Work networks like Ethereum. For their security and transaction confirmation, they receive ETH block rewards and transaction fees. Block rewards were slashed in 2019 but fees continue to rise as demand due to DeFi grows.
Impact on the ETH price:
Bearish. This implementation could weaken the network since miners will possibly power off their gear because of revenue uncertainty. Transaction fees fluctuate depending on demand and developers are doing everything they can to reduce Gas fees to manageable levels. Miners can’t rely on Gas fees as their primary source of revenue given the existing conditions.
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