Ethereum developers present a miner-friendly compromise for EIP-3668

Ethereum developers presented EIP-3368. The proposal would raise miners’ block reward to 3 ETH and lower it to 1 ETH after the London hard fork by burning a portion of transaction fees.

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

The developer Tim Beiko stressed that the initiative has not yet been adopted or integrated into any forthcoming hard forks.

The initiative could ease tensions between the community and opponents of EIP-1559. Earlier they announced on April 1 a campaign against abandoning the existing auction-based fee market, based on auctions. In February the share of collected fees was 52.9% of miners’ total revenue, which reached a record $1.36 bn.

The implementation of EIP-3368 will ease the blockchain’s transition to the new consensus algorithm Proof-of-Stake.

One of the active participants in the April 1 “show of force,” Red Panda Mining, pledged to drop the show of force and back the new proposal.

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

Within the Ethereum community, EIP-3368 has not been embraced unambiguously.

«This can be viewed as a subsidy from users to miners to delay upcoming changes. By the way, why? Why do they have such privileges? Why not start with 2 ETH? There is no such thing as risk-free business. Their “useless” equipment market will readily absorb the market. Even if that were not the case, miners’ personal, business decisions should not be users’ concern. You do not share profits with society, and thus you do not distribute losses» , —wrote one of them.

Another saw in EIP-3368 an incentive for miners to buy new equipment. In his view, this should be avoided in light of the upcoming ETH1–ETH2 merge and the abandonment of Proof-of-Work.

What is Ethereum 2.0?

As a reminder, around April 14 the Ethereum network is expected to undergo the Berlin hard fork.

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