Ethereum’s EIP-1559 upgrade is almost a month away with its launch scheduled on August 4th as we can see more in our latest Ethereum news today.
The long-awaited London upgrade for the ETH network is getting closer as the code is finally deployed to the final testnet this week. Ethereum’s EIP-1559 upgrade or London hard fork has been scheduled for August 4 after the launch of the Rinkeby testnet. ETH Developer Tim Beiko posted the update confirming that the coin has been deployed to all three testnets. The mainnet launch will occur at block 12965000 that puts the data at August 4 and the first block was produced on the Ropsten testnet back on June 24. The goerli testnet was deployed on June 30 and Rinkeby is now in the final testing phase before the mainnet goes live.
And we are live https://t.co/a5blKgbZym
All three testnets have now successfully upgraded to London
Note: because of OpenEthereum being deprecated after London, a block hasn’t been set for Kovan yet, and it will likely upgrade after mainnet. https://t.co/rCnLDMjxZj
— Tim Beiko | timbeiko.eth (@TimBeiko) July 8, 2021
The London upgrade has been named after the second-annual ETH developer’s conference in 2015 and it could take the network In a deflationary state via the adjustment of the current auction mechanism for the network fees. The EIP will introduce a base fee instead of the existing first price auction fee and according to Consensys, the more transactions occur, the more pressure that the burning of the base fee will have on the supply.
It wouldn’t reduce the gas fees as many hoped but Consensys confirmed this in a guide upgrade last month suggesting that the fees could ease slightly:
“As a side effect of a more predictable base fee, EIP-1559 may lead to some reduction in gas prices if we assume that fee predictability means users will overpay for gas less frequently.”
The upgrade will see some of the transaction fees burned which will have an effect on the supply of ETH over time. The website has been set up to see the mechanism in action in different testnets and at the time of writing more than 89,000, ETH has been burned on testnets valued at $185 million. The deflationary of the system could be enhanced when the network goes from mining to proof of stake consensus in the first half of 2022.
As reported recently, The ethereum exchange reserves drop to a two-year low and according to CryptoQuant, the number dropped from 26 million from June 2020 to less than 21 million by July 2021.