- Battle erupts as EIP-3336
- Mining fees increase
- Clarity emerges EIP - 1559 won't lower mining fees
- Miners want reimbursement for their business investment
Red Flags raise but Ethereum value still high
A battle has been raging since Ehtereum's proposal of EIP-1559 was announced, I was always sus on the changes as when I read it I didn't believe it would lower GAS fees as transactions still required a tip in order to confirm transactions. Without a set amount this would leave it open to increased Ethereum GAS prices with the possibility of it being higher than now. All EIP-1559 achieved was a set bottom for the network burn.
Sounded more of a means to increase the value to go after Bitcoin than an actual system upgrade. But that's the second point to this post, the first is EIP - 3336.
EIP - 3336
An alternative proposal has gone live on the Ethereum site for voting. It is proposing to increase fees from the current 2ETH price upto 3ETH with a reduction to 1ETH over a two year period.
The proposal states that it is to disable a 51% as the submission alleges that Miners equipment would be worthless in PoS and they would only be able to make money by renting out their equipment. This would enable someone to hire it all and undertake a 51% attack.
Furthermore, Miners want to make more money to cover the cost of their equipment. Allegedly they haven't made enough yet to cover the operations costs.......
This proposal has caused significant uproar and users are stating it will set a president that certain stake holders are the sole benefitors of networks. It would also send a shockwave across the block chain and scare off investors.
User Greg hits the nail on the head on a topic I have long suspected and that is that the EIP - 1559 proposal won't lower fees just create a predictable fee structure.
You can read more of the debate Here
Further, more it appears that the battles engulfing the network are starting to take a turn for the worse as more and more Miners can not come to a consensus. You can read the EIP - 3336 proposal
Binance
I spoke many weeks ago about the dangerous ramifications of an increasing fee structure that was growing on the Ethereum network. This caused a significant amount of investors to leave Ethereum for binance.
Binance' native currency boomed over night which indicated a large cohort left. After the previous massive decline that appeared to only impact ERC20 tokens there has been a masked return to green. I use the term masked because the re-establishment of prices was hiding what lurked below, Danger.
Ethereum was unclear with with announcement and fee structure with their BETH network. Alot of investors anticipated that BETH would cause a reduction in GAS fees. So many stayed loyal in anticipation for BETH.
As the months have gone by I am not clear that investors are following what is occurring. Once I learned the potential fate of Ethereum its risk was too great for me to stick around so I dumped for Polkadot, Leo Finance, Hive and CUB.
Like many others, but a little slower I finally left and went to Binance.
I understand the current Ethereum price appears lucrative, but without adequate access to data I can't judge if the user base is growing or shrinking. But I believe one thing is certain, if this proposal gets up Ethereum is dead.
I will also go as far as to say that Ethereum is on it's way out. It will be interesting to see how long and how drawn out this process is. It is clear that EIP - 1559 will not lower GAS fees.
My opinion not advice
I honestly can not see Ethereum lasting, I believe there might be another bull run as user base reduces and the current projects utilising the network continue to use the block chain. However, I believe any ERC20 tokens currently on the block chain that aren't developing an exit strategy to switch their projects block chain, will fail in the coming months or year.
I further find it odd that Ethereum miners expect ERC20 users to secure their initial investment and buy them out. As this is what EIP-3336 basically is. A miner buy out.
Ethereum Devs were attempting to speed up the EIP-1559 roll out but with constant in fighting stability is not looking good.
What are your thoughts? Is Etherem dead and dieing, or will it bounce back?