Ethereum co-founder Vitalik Buterin commented on threats from miners in connection with the upcoming EIP-1559 update.
Vitalik Buterin practices Chinese on local social networks Ethereum miners fear that the upcoming EIP-1559 update will leave them without earnings.
Some of them even suggested going on strike or creating a potential 51% attack threat. However, according to Chinese industry columnist Colin Wu, Buterin is not at all afraid of such threats. Responding to possible sanctions from the miners, he replied that the network will switch to the PoS (proof-of-stake) consensus algorithm as soon as possible.
Wu translated the comments of Vitalik, who often writes in Chinese on local social media:
“Vitalik said the value of EIP-1559 is that almost every transaction can be confirmed within 1-2 blocks. Now the network is too busy, and the miners’ commissions are updating record after record.
@VitalikButerin does not care about the opinions of Chinese miners? He suspected that in the Chinese community, “If some miners leave, new ones can come. If the miners attack 51%, we will all move to POS as soon as possible.” Vitalik often speaks in Chinese in Chinese communities pic.twitter.com/dACceoJMAb
– Wu Blockchain (@WuBlockchain) February 23, 2021
Does Vitalik care about the opinion of Chinese miners? Most likely, he is sure that if someone leaves, there will always be people willing to take his place. If the miners decide to organize a 51% attack, the project will quickly switch to POS.
Discontent among miners is growing
The income of miners on the Ethereum network is growing exponentially along with the price of gas. According to BitInfoCharts, today the average transaction fee has broken another record, approaching $ 40.
Earlier this month, it became known that Ethereum mining revenue reached $ 3.74 billion per hour.
Faced with the prospect of cutting profits, miners could trigger a fork after the implementation of EIP-1559. Something similar happened with Ethereum Classic – this branch was the original one before the fork that occurred after the DAO hack.
Ethereum Beacon Chain
EIP will change the way the current auction system for transactions works, and will allow them to be dynamically generated. In theory, this should lower the fees for the average user. In addition, the upgrade involves the burning of some of the commissions, which will positively affect the stability of the network in the long term.
Burning is good news for Ethereum holders as the supply shrinks. But miners are not happy. This is the money they could get for “work.”
EIP-1559 is just around the corner
In any case, Ethereum will switch to a proof-of-stake algorithm, which will inevitably affect miners. However, EIP-1559 is likely to be implemented in the London update. The developers plan to release it this July.
Long overdue, here’s another EIP-1559 update 🔥 https://t.co/7uN7mO8lLG
It covers the client performance testing, changes to the EIP’s spec, our intent of proposing it for London, the recent mining concerns, and the best write-ups on 1559 & more over the past month 😁
Facebook Facebook logo Sign up for Facebook to connect with Tim Beiko timbeiko.eth (@TimBeiko) February 22, 2021
Lead developer Tim Beiko recently stated that large-scale testing was “99% complete.” The question of whether to include the long-awaited proposal to reduce gas commissions will be decided at the call of the team on March 5.
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