- EIP-1559 is expected to be implemented on Ethereum in July with the “London” hard fork.
- Opposition to the EIP remains strong, with Chinese miners apparently discussing a fork, as reported by Wu Blockchain.
The deploying of EIP-1559 to change the fee model on Ethereum seems inevitable. However, the proposal is still heavily debated among miners, while the deployment is tentatively scheduled for a rollout with the “London” hard fork in July. Just yesterday, EIP-1559 was again the subject of a community call.
The controversy comes despite the fact that Ryan Berckmans, an Ethereum consultant, noted that the proposal will only reduce Ethereum miner revenue by 20% to 35% – a much lower percentage than the 50% previously estimated. On a recent Ethereum core developer call, Tim Beiko compiled some feedback that some miners have given on EIP-1559.
Among those supporting the proposal is mining giant f2pool, one of Ethereum’s largest mining pools. During the call, the group claimed that the Ethereum network roots its value in its users and applications, and therefore urged other miners to adopt the proposal.
Representatives from the Flexpool mining pool recently conducted a survey to gauge miners’ opinions. 441 of the 797 miners surveyed voted in favor of implementing the proposal, while 142 were opposed. However, Flexpool and other participants in the call still show concerns about the “burning” mechanism, a possible reduction in transactions, and the creation of an “imbalance,” miner BitsBeTrippin added:
(…) if you have an exponential amount of hashpower joining at that time, a lot of hashpower could become available to rent, increasing the odds of 51% attacks on Ethereum.
Deribit Insights researcher Hasu believes that the Bitcoin and Ethereum mining sector has already seen “stronger” declines than EIP-1559 and will be “fine.”
Meanwhile, developer Abdelhamid Bakhta has revealed the results of the latest test performed for EIP-1559 which ran for 22 hours uninterrupted with 6,426 blocks processed. The results were positive and only one item – the risk of a DoS attack – remains which will have to be addressed before deployment in July.
🔥 EIP-1559 Performance Test Update 🔥https://t.co/kcTuzq7sLS
– 22 hours non-stop test
– 6426 blocks processed
– 41 M gas/block average
– 12 M transactions executed
– 2139 average transactions per block
– 95% of blocks were at least 15M worth of gas#supportEIP1559
— Abdel #1559 🦇🔊 🌕 $XKI (@dimahledba) February 25, 2021
The consensus among the call participants is that EIP-1559 will greatly enhance the user experience and be a benefit to the community. As a result, miners should be able to continue to grow their revenues.
@gakonst: main takeaway for miners should be that MEV drastically changes the landscape, and that the fee loss from 1559 is lower than what is being calculated now. Miners are long the Ethereum economy, as that grows, so does their revenue.
— Tim Beiko | timbeiko.eth (@TimBeiko) February 26, 2021
Will Chinese miners fork Ethereum?
Meanwhile, a recent report by the journalist Chinese Colin Wu examines the actions that could be taken by miners who completely disagree, particularly Xinghuo Mining Pool. Xinghuo’s argument is that after the proposal is implemented, “there will be no more ecology for fees.”
Although these miners have considered a fork of the network, they know that much of the revenue comes from the DeFi sector, which cannot be easily migrated to a new blockchain. As a result, Wu believes the miners will stay on Eth1’s blockchain, but may fork Ethereum when the Proof of Stake is activated:
(…) if PoS is realized, the Chinese miners will unite and fork to maintain an ETH before the PoS status, otherwise their large number of graphics cards and ASIC mining machines will become scrap iron.
As reported by CNF, EIP-1559 will introduce a fixed-per-block network fee that is burned and dynamically expands/contracts block sizes to deal with transient congestion. Proponents of the proposal not only argue that it will alleviate pressure from high fees, but will give ETH “more certainty over its supply.”
Will Smith’s Son, Rapper and Actor Jaden Smith, Posts Mysterious “ETH” Tweet
Jaden Smith joins the crypto-celebrity list with two tweets in a row
The “Icon” author, rapper, Hollywood actor and mega-star, Will Smith’s son Jaden Smith, has posted a mysterious “ETH” tweet that followed a “Web3” publication shortly after.
The purpose behind the two tweets has not been disclosed, but it is most likely tied to the rising popularity of the two industries. Previously, Ethereum’s price has reached the new ATH, which might have caught the famous rapper’s attention.
ETH— Jaden (@jaden) October 22, 2021
Both crypto-related tweets have been warmly welcomed by the audience, collecting approximately 8,000 likes and more than 1,000 retweets on Twitter. In the comment section of the Web3 tweet, Jaden said that he actually owns an NFT just like his industry partner Snoop Dog.
With the rapid price increase of the Bitcoin, DeFi and NFT industries, more celebrities are exploring cryptocurrencies and blockchain technologies. In addition to giving significant investment returns, digital assets technologies may potentially change the banking, finance and art industries in the future.
Ripple CEO Says the SEC Helped Ethereum to Surpass XRP as No.2 Crypto
- Ripple CEO aired his opinion on the crypto market and regulations.
- Brad Garlinghouse said the US SEC granted Ethereum regulatory green light.
At the DC Fintech Week virtual conference on October 21, Ripple CEO Brad Garlinghounse aired his thoughts on the state of the crypto market and regulations. Besides, he holds a grudge over the financial regulator’s approach to Ethereum.
In addition, Garlinghouse declared that the US Security and Exchange Commission (SEC) granted Ethereum regulatory green light that enabled it to surpass his firm’s XRP token.
Likewise, the Ripple boss feels that his firm has been played out. But, at the same time, Ethereum’s subsequent success is at least in part down to more favorable treatment by the US SEC. Also, Garlinghouse stated that it is affecting its market. He said,
“Within the last few years, XRP was the second most valuable digital asset. As it became clear the SEC had given a hall pass to ETH, ETH obviously has exploded, and that clarity has helped.”
To clarify, XRP was the second-largest crypto asset by market cap in late December 2017. But, currently, it has dropped to seventh place while Ethereum has kept the second spot ever since.
Furthermore, the reason why XRP dropped is the US SEC pursuing Ripple over claims that XRP is unregistered security. In fact, in January, Ripple filed a Freedom of Information Act request with the US SEC demanding to know why it didn’t consider ETH security.
As a result, later in July, a district judge allowed the firm to depose a former official who declared in 2018 that ETH was not a security.
Ripple CEO reinstates SEC bias towards ETH, claiming XRP could’ve been No.2
It is not news that the ongoing XRP lawsuit has got the better of Ripple’s XRP token. Ripple CEO, Brad Garlinghouse recently questioned the SEC’s bias towards Ethereum, claiming that XRP would’ve been at the No. 2 position instead of ETH if it weren’t for the commission’s partial crackdown. Garlinghouse spoke at the DC Fintech Week virtual conference yesterday, arguing that the U.S. Securities and Exchange Commission alleged Ripple’s XRP as unregistered security while granting Ethereum a regulatory free pass, which in turn helped ETH shoot through the roof.
“Within the last few years, XRP was the second most valuable digital asset. As it became clear the SEC had given a hall pass to ETH, ETH obviously has kind of exploded and that clarity has helped.”
XRP secured the position of the second-largest crypto asset by market capitalization during the latter half of 2017. However, the token has dropped down to seventh place while Ethereum stands strong as No. 2. Furthermore, Garlinghouse claims that the SEC’s exclusively aggressive anti-crypto stance to allegedly protect the consumers is in fact anti-investors. Referring to the XRP lawsuit, Ripple CEO emphasizes that “nearly 50,000 U.S. people who hold XRP who are trying to sue the SEC for ‘protecting them’”.
XRP Holders left with bearish and frozen funds
Earlier this week, Attorney Deaton Filed a Letter Motion on behalf of the XRP Holders (Movants) that contended SEC’s extension request, with the main argument concerning the XRP holders’ frozen funds because of the consistent postponement of the lawsuit’s final verdict. During the ongoing bull run, XRP remains considerably bear because of the regulatory crackdown on Ripple. However, the court has overlooked the community’s concern and granted the extension explaining that in lieu of pending motions, extra time will only facilitate both parties to complete pending fact discovery and thoroughly prepare for upcoming expert depositions.
“The lack of liquidity within the United States, coupled with the mass de-listings prevents XRP Holders from trading, selling, transferring, or converting their XRP. It is because of this de facto in place seizure of their property that XRP Holders took the extraordinary step to seek intervention as defendants… Any delay in the underlying action marks yet another day XRP Holders do not have access to their funds.”, wrote Deaton.