The much-awaited Ethereum (ETH) development proposal (EIP) 1559 has run into its opponents as several Ethereum miners united to prevent its implementation. It’s not yet clear where the two of the largest pools stand on this issue.
‘Nine’ mostly smaller mining pools have joined the “STOPEIP1559” campaign. There is a giant amongst them, though, as they are joined by one of the three largest pools, Ethermine, by itself estimating for nearly 21% of the network’s hash power. Mutually, the nine’s power amounts to 28.1% in the past week.
On the flip side, the website lists eleven pools, including the other two of the largest pools, Spark Pool and F2Pool – the latter two together valuing for some 36% of the network’s hash power over the past week, through Etherscan.
Nevertheless, the ‘againsts’ are more significant than the ‘fors.’ Save for a slightly vague tweet by Chun Wang, co-founder and administrator of F2Pool, there doesn’t appear to be any formal communications from either F2Pool or Spark Pool.
Wang verified that, as he stated in his tweet earlier, “We support EIP 1559.” He continued that he’d “speak at ETHDenver on this topic next month and will share with the community more details over the next few weeks.”
Their Twitter comments may suggest so as well. If that’s the case, Ethermine and Spark Pool would collectively account for 45% of hash power.
The movement to block the plan comes after minor mining pool Flexpool stated earlier this month that they stand against the proposal, given that it would involve paying miners “significantly less for the same work,” that large mining pools control 51% of the network and can implement changes without the consent of miners, and that fees would be destroyed instead of paid to miners, they said.
Flexpool mined 11 blocks and ETH 28 in December and has estimated 0.04% of the hash power in the last seven days. Though tiny, it’s urging miners to stop supporting the pools, which they say have the power to control the network and stand against the EIP.
EIP-1559 is anticipated to bring the automated setting of fees and token burn mechanism for each transaction and an improved fee market – and it has been, generally speaking, highly contemplated within the ETH and the wider crypto communities.
This EIP is intended to help mitigate an issue that’s been bothering the network for a long time, provoked by the growth of decentralized finance (DeFi): notable congestion and high transaction fees. It also blocks miners from profiting from allowable transaction fees. According to the current system, the senders who select to pay higher fees will draw miners’ attention and be dealt with sooner, while the system will push lower-fees one down the list to wait their turn.
Meanwhile, Ethereum developer Micah Zoltu stated that “any censorship attack by miners against the interest of users will almost certainly result in the core developers taking very aggressive action against miners,” most likely resulting in the developers rushing to launch the proof-of-stake consensus mechanism, “which would completely remove all miners/mining from Ethereum.” He argued that if the block’s miner received the base fee, there would effectively be no change with EIP-1559.
Developer Alex Stokes explained that not only should EIP-1559 not harm the viability of mining as a profession but that “the upgrade strengthens ETH the asset which is a clear boon for miners.” ConsenSys Senior Product Manager Tim Beiko also provided detailed explanations of user experience, economic and security benefits that he says come with implementing this EIP.
Tim Roughgarden, an American computer scientist and a Professor of Computer Science at Columbia University, emphasized that “no transaction fee mechanism, EIP-1559 or otherwise, is likely to substantially decrease average transaction fees; persistently high transaction fees is a scalability problem, not a mechanism design problem.”
As reported, in August 2020, Anthony Sassano, SetProtocol product marketing manager, stated that EIP 1559 could arrive by mid-2021. At the time, two clients were already running in a private testnet.
As shared by BitInfoCharts.com, the Ethereum average transaction fee (7-day moving average) was USD 7.3 on January 21, down from USD 10 seen earlier this month. The price of ETH is USD 1,172 at 9:51 UTC Friday morning. It’s down 7.3% in a day and 4.4% in a week.
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