Ethereum Merge Scheduled!
What is the “Merge”?
We have seen ETH pump nearly 80% in the last month due to the imminent merge that has been years in the making. Finally, the tests are complete and the merge is set for Sept 15th or 16th depending on block mining difficulty. Ethereum mainnet will merge with the beacon chain to become a proof-of-stake consensus chain marking the first time a POW chain has transitioned to POS. The merge will reduce the chain’s energy consumption 99.95%. It also sets the stage for future scaling upgrades in the form of sharding.
How else does it change ETH?
Transitioning to POS means investor will generate yield from holding their ETH in the form of ETH emissions. It also decreases block times from 13 to 12 seconds. Thus, transactions should be a wee bit faster and gas a little bit cheaper.
Will it make gas fees substantially lower?!
Sadly No! This is a huge misconception in the broader crypto community. Gas fees will stay relatively stable and will still spike during times of high demand. The merge does posture Ethereum to deploy future upgrades that should decrease gas fees.(Sharding)
(looks like the ETH logo innit?)
Will number go up?
I don’t have a crystal ball or anything, but the merge will decrease the ETH issuance from 4.3% per year to a mere .43%. Think of this as a triple halving. In addition, EIP-1559 implemented a burning mechanism that burns part of all transaction fees. I've read that if ETH is 15gwei or higher in gas cost, it will be deflationary. During high demand times like a hot NFT mint, ETH WILL become deflationary. If supply decreases and demand stays the same, then yeah ETH should enjoy some nice price action.
I am by no means an ETH maxi; I actually find the ecosystem cumbersome and unintuitive. However, The merge is probably a top 3-5 moment in crypto history and it is bullish AF.
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