The London update launched on the Ropsten testnet last night, with activation on the Ethereum mainnet expected until the end of July. The main innovation of London is the proposal to improve Ethereum EIP-1559, which provides for a new mechanism for calculating fees and burning most of them. The first test results were encouraging.
According to Watch TheBurn, 88,483 ETH has been burned since London was launched. While the coins on the testnet have no value, if the flaring took place on the mainnet, ETH with a total value of $ 170 million would have been withdrawn from circulation.
The developer Peter Siladji published a diagram showing the distribution of burned commissions. In the most “expensive” block, 768 ETH was burned. Some admit that at this rate, Ropsten may be left without test coins at all.
“I don’t know who tried to draw a rabbit using commissions, but you need to work on your skills. He’s some kind of freak! ” – writes Siladya.
According to the estimates of the leading Ethereum studio ConsenSys, thanks to EIP-1559, the annual emission of ETH will decrease by 1.6 million coins, which is equivalent to $ 3.1 billion at the current exchange rate, and inflation will fall to 1.4%. An additional reduction in emissions is expected to support the transition to staking in Ethereum 2.0, scheduled for 2022.
In February, the founder of Predictions Global, Ryan Berkmans, noted that thanks to this mechanism, the value of the ETH paid as fees will go to the holders of the cryptocurrency, and not to the miners. He also admitted that the price of ETH could rise to five-digit levels as a result of deflation.
ConsenSys advises users not to expect too much of a drop in fees following the launch of EIP-1559.
“As a side effect of the more predictable fees, EIP-1559 could lead to a slight decrease in the price of gas, assuming that higher predictability means less overpayment,” the firm writes.
Earlier, Ethereum developers urged users to actively participate in testing EIP-1559 in order to avoid “very big trouble.”
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