oklinkA leading blockchain explorer, shared some news related to the current Ethereum mainnet with Beacon Chain POS system. At press time, the system merge of the two systems was 99.75% complete.
Complete transformation is the epitome of Paris upgrade. In addition, the upgrade will be triggered by Terminal Total Difficulty (TTD) of 58750000000000000000000.
8 in september report goodIntoTheBlock, a blockchain analytics platform, suggested that the likely dates for the Ethereum merge are September 14 and 15. With current TH/s, the merge is expected on September 15th.
Ethereum after the merger
in a new report good, IntoTheBlock highlighted some of the potential implications of the transition to a PoS consensus mechanism on the Ethereum mainnet.
According to the report, a significant impact of this transition is that the issuance of ETH per block will drop from 85% to 90% after the merge.
This drop would equate to “the effect of three bitcoin halvings at once”.
ahead, IntoTheBlock believes that the supply of ETH in the market will drop. This is due to the decline in ETH issuance and the lack of need for miners on the network due to merges.
According to the report, around $20 million to $25 million worth of price pressure will be taken off the market depending on the current rewards given to existing miners.
Furthermore, it is normal for all ETH shares leading up to the merge to remain untouched until Shanghai is upgraded after the merger. This will further restrict the supply flow of ETH.
However, the decline in ETH issuance will not last forever. The supply of ETH is expected to gradually increase “as staking more ETH leads to more emissions, even though these cannot yet be claimed.”
ETH burn burn?
Furthermore, IntoTheBlock believes that post-merger ETH will be slightly deflationary as the supply will drop “slightly” when the merge is completed. It added that fees paid to execute transactions on the Ethereum network could reverse in the days following the merge.
This is because this event could lead to increased volatility per ETH price. Moreover, the market speculation could also result in “burning of more ETH in the process”.
A provision was also provided that if transaction fees fall back to their 30-day average, the dominant option would be “moderate inflation”. As a result, IntoTheBlock estimates -1% to +0.5% ETH inflation after the merge.
IntoTheBlock said post-merger staking returns should be between 5% and 7%. Transaction fees on Ethereum have dropped over the past month, and as a result, rewards for stakeholders have also declined. according to the report,
“As more ETH is staked, returns show a proportionate decline, suggesting that staking yields will decline over time until fees return to the levels seen at the beginning of the year.”
At the time of writing, it took two days, 34 minutes and 8 seconds until the merge was completed.