Ethereum miners have split into two opposing camps over the EIP-1559 proposal. It envisages burning a portion of transaction fees and aims to reduce the volatility of gas prices.
The third-largest Ethereum pool, F2Pool, published a пост in support of the Ethereum Improvement Proposal.
“Today the broader community, along with developers, remains committed to developing Ethereum by including EIP-1559. It is important to stand firm in this stance together with users and key participants in the ecosystem,” wrote representatives of the pool, which accounts for about 11% of the hashrate.
A day earlier, the largest Ethereum pool SparkPool spoke out against the proposal.
Sparkpool opposes EIP-1559. https://t.co/6pw7QNN2Ug
— SparkPool.eth (@sparkpool_eth) February 25, 2021
“This is tyranny by the majority in the name of a better user experience (in reality, not). This is theft. Why do we love Ether and Bitcoin? Because they grant us indisputable ownership rights,” wrote earlier SparkPool representatives, which controls 24% of the hashrate.
Against EIP-1559 earlier spoke Bitfly, operator of the second-largest Ethermine pool, calling the proposal “a threat to Ethereum’s future”.
We have been observing the situation within the community and would like to state that Ethermine is against adopting Eip-1559 in its current state because we believe that Ethereum’s future may be at risk.
— Bitfly (@etherchain_org) January 19, 2021
As of now, opponents of EIP-1559 account for more than 50% of Ethereum’s total hashrate.
According to the representatives of F2Pool, the likelihood of activation of the proposal is reflected in the price of the second-largest cryptocurrency.
“If the proposal is not implemented, this is likely to negatively affect ETH’s price in the short term,” the pool representatives shared. “Negative price dynamics could trigger a sequence of events leading to further deleverage on centralized and decentralized markets. In the end this will also affect miners, whose revenues depend on the price of ETH.”
EIP-1559, proposed by Vitalik Buterin in 2018, is one of the most anticipated upgrades in Ethereum’s history. It is designed to make the network safer and gas prices more predictable.
The proposal also implies burning a portion of transaction fees, the share of which in miners’ revenue recently again exceeded 50%.
Share of transaction fees in Ethereum miners’ revenue. Data: Glassnode.
According to the roadmap, the upgrade is expected to occur within three to six months after Berlin hard fork.
Many in the community are pinning their hopes on layer-2 solutions based on Rollups, designed to significantly relieve Ethereum and reduce the urgency of the network’s scalability problem.
In January, the synthetic asset platform Synthetix carried out a pre-launch of the Optimistic Ethereum solution.
In February, the Optimism project behind the development of Optimistic Ethereum closed a funding round of $25 million, led by Andreessen Horowitz.
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