Institutional cryptocurrency fund Grayscale Investments believes that the introduction of a new commission mechanism can create a positive trend for the price of ether if its network activity continues to grow, writes RBC Crypto.
This proposal could cause Ether to be burned at a rate faster than the creation of new coins, which will change the supply and demand dynamics underlying the Ethereum markets.
Grayscale has published a report that looks at a proposal to improve the cryptocurrency protocol. It supports the introduction of a “base commission” that will be burned when transactions are executed along with the fees miners receive.
The “base commission” will depend on whether the network exceeds the throughput by 50%, which allows better predicting price fluctuations for the network’s internal token gas and will make ether the only economic unit of the network. If the burning of ether to pay for transactions occurs more often than the release of new coins, this will positively affect the value of the cryptocurrency, we are confident in Grayscale.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
