Ethereum developers have published EIP 3368, which implies an immediate increase in block reward to 3 ETH and then a decrease to 1 ETH within two years after the implementation of EIP 1559.
Ethereum Improvement Proposal (EIP) 3368 was released amid miners’ opposition to planned changes to the network’s fee system. While the proposal is viewed by some as a means of reducing tensions between miners and Ethereum developers, it doesn’t seem to have received much support from the community yet.
Tensions have escalated in the Ethereum community in recent weeks over EIP 1559, which is scheduled to roll out in July. EIP 1559 implies burning ETH when paying commissions. This will significantly reduce the constantly growing transaction fees, but will affect the income of miners, who can lose up to 50% of their profits.
To express their disagreement with the proposal, some of the Ethereum miners are planning to team up for a 51-hour “show of power” on April 1. Miners intend to send the hash rate to the Ethermine pool, which opposes EIP 1559, for 51 hours.
EIP 3368 implies an immediate increase in block reward to 3 ETH, and then a decrease to 1 ETH within two years after the implementation of EIP 1559, in order to reduce the negative effect of Ethereum’s transition to Proof-of-Stake (PoS) on miners.
Last weekend Ethereum developer Tim Beiko called on on Twitter to actively discuss EIP 3368. He stressed that EIP 3368 is “not yet adopted” and “not scheduled to be forked.” The developer described this proposal as “the most tangible result of expressing dissatisfaction with miners [относительно 1559] in the last few weeks. “
Coming out of my twitter break to share this: miners’ “counter proposal” to 1559 is EIP-3368, which would raise the block reward to 3 ETH and lower it to 1 ETH over ~2 years. @BitsBeTrippin should present it at the next AllCoreDevs. @EthMagicians thread: https://t.co/CLxc30AUPf
– Tim Beiko | timbeiko.eth (@TimBeiko) March 12, 2021
In response to EIP 3368 Red Panda Mining, which was among those who pushed against EIP 1559 miners, promised support this proposal and announced that he “will refuse to participate in the demonstration of force.”
We have been heard. EIP-3368 has been proposed. Reward to 3 ETH but drops 0.25 every quarter till 1 ETH over 2 years. I am going to rescind from the show of force to @etherchain_org April 1st and so should all of you (unless you were already on ethermine)
— Red Panda Mining (@RedPandaMining) March 13, 2021
Despite comments from Red Panda Mining and Beiko that Ethereum miners and developers could reach a compromise, the Ethereum community remains fragmented, judging by the discussion of EIP 3368 on the Ethereum Magicians forums. User green describes the offer as “a user subsidy to miners to defer upcoming changes.” He notes:
“The personal business decisions of miners are not the concern of Ethereum users. You are not adapting to making a profit, so you will incur losses. ”
Other forum attendees highlighted the efforts of major Ethereum developers to accelerate the merger of the existing network with ETH 2.0, describing EIP 3368 as delaying the inevitable. DCInvestor wrote:
“This proposal will only delay the inevitable as we are rapidly moving towards a merger of ETH1 and ETH2 with zero mining rewards for PoW. I think we should avoid measures that encourage further investment by miners in hardware, given this reality. ”
Apparently, some miners also disliked the EIP 3358, and numerous the answers Red Panda Mining’s Twitter post indicates that many miners are still are planning take part in a “show of strength”.
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