- Ethereum’s upcoming ‘merge’ will not reduce the gas fees.
- The ‘merge’ is also expected to get rid of the need for energy-intensive mining.
- The upgrade is expected to be live before September 19.
The Ethereum Foundation, a non-profit organization supporting Ethereum and related technologies, clarified on August 17 that the anticipated ‘The Merge’ will not “change any parameters that directly influence network capacity or throughput.” Implying that the gas fees will be high when more people are using the blockchain. And, gas fees will only decrease when less people use it.
Furthermore, the non-profit organization also disclosed that ‘The Merge’ aims to cease utilizing proof-of-work by shifting into proof-of-stake consensus. Yet, the parameters that directly influence the network capacity or throughput will not change.
Ethereum, the most-used blockchain that powers Ether, is the second largest crypto by market capitalization. Various decentralized apps (dApps) and decentralized finance (Defi) protocols are hosted by Ethereum, which allows the validity of millions of non-fungible tokens (NFTs). This means that both the Ethereum blockchain along with the wide range of products and services depending on it will be affected by the result of this merge.
The Merge is expected to remove the demand for energy-intensive mining by fusing the current execution layer of the Ethereum mainnet with the new proof-of-stake consensus layer called ‘the Beacon Chain’.
Accordingly, ‘The Merge’ is set to provide zero Ether staking requirement, which allows everyone to have the capability to run a node. In addition, the upgrade also aims to avoid a possible liquidity crisis, like Terra’s Luna and UST, by limiting the rate of validator withdrawals. After the merge, APR yields are also presumed to increase 50%.
Investors and traders that purchased Ether believed that the capacity and value of the network will be at the upside when the upgrade goes live. According to the client developers, ‘The Merge’ is set to be done before the given deadline on September 19.
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