$41 million USD worth of Eth burned seems like a lot but not really if you consider that there’s almost $30 Billion USD worth of Eth in rotation today.
Only time will tell if this new system will make it deflation proof but at the moment it seems to be working.
From my research, the Ether network Hashrate has not dropped at all, which tells me the fee system change hasn’t scared off any miners yet.
Another major upgrade included with EIP 1559 is the new increased block size. However, that doesn’t mean Ethereum can process more transactions. The new block size is sort of a support implementation for the new fee system. By having more available block space, the system can handle any overflow transactions and this is to prevent network congestion which typically causes the fees to skyrocket due to people needing to run their transactions asap for whatever reasons that might be. This provides the new fee system with predictable network activity data which then they can charge fees accordingly.
Here’s the link for the full EIP 1559 change log that goes into detail about all the new implementations:
All the upgrades seemed to have went off smoothly and Ethereum was able to maintain their network hashrate even though miners are at a 23% profit lost but as a gamer who casually mines Eth, I haven’t seen much difference due to the fact that the price of Eth has also gone up which kind of just balances it out.
This Eth upgrade has also shown that big miners are also willing to adapt to new industry standards since they had to update their mining software for the EIP 1559 upgrade. This will be a major key for when Eth 2.0 comes out next year which will switch their current PoW model to a PoS model, which aims to cut down energy consumption by 80%.
As a coder and a crypto enthusiast, I am happy to see Ethereum evolve and grow and continue to adopt more users and investors to the platoform.
If you are interested in the Eth 2.0 upgrade, you can read my post here:
ETH 2.0 is coming!. What you need to know about the… | by Steven Wu
Thank you for reading and please leave a comment if you‘ve enjoyed and follow for more coding and tech content.
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