A meaningful Ethereum Improvement Proposal (EIP) has been submitted by ConsenSys' Managing Director John Lilic, and it may significantly affect the Ethereum (ETH) mining process in view of skyrocketing network fees.
Third Block Reduction Proposal Initiated
In a recent tweet, Mr. Lilic announced that he submitted EIP 2878, which proposes a block reward reduction to 0.5 Ether. If accepted, this upgrade would reduce rewards for miners for the third time in Ethereum (ETH) history.
This EIP proposes a block reward reduction. If accepted, this would be the 3rd time #Ethereum has undergone a block reward reduction, and will reduce the block reward to 0.5 #ETHhttps://t.co/X5GjhWccM1— John Lilic (@JohnLilic) August 14, 2020
Tim Beiko, an Ethereum (ETH) developer and product manager at PegaSys, thinks that such an important discussion should migrate from Ethereum main GitHub repository to the Ethereum Magicians community.
Another Ethereum (ETH) contributor, decentralized predictions market developer Ryan Berckmans, claims that with this upgrade, the mechanism of burning fees (long-anticipated EIP-1559) should be also introduced to the Ethereum (ETH) consensus:
If anything, we should consider burning some or all of the fees.
As previously covered by CryptoComes, Ethereum (ETH) network fees skyrocketed last the few weeks. Ethereum (ETH) Co-Founder Vitalik Buterin accuses the infamous Forsage Ponzi scheme of clogging up the network and consuming lion's share of gas.
Ethereum (ETH) Network Metrics are on Fire
This EIP was introduced amidst the insane rally of major Ethereum (ETH) fundamentals. Jacob Franek, Co-Founder of on-chain data vendor Coinmetrics, announced that at least six meaningful network indicators have broken above all-times high (ATHs).
For instance, the 90-day moving average (90-day MA) for the transaction count and quantity of active addresses holding 0.1ETH+ has gone through the roof.
In terms of network resource exhaustion, the 90-day MA of total daily gas fees (U.S. Dollar equivalent) has also surpassed the insane 2018 levels.
This upmove of Ethereum (ETH) fundamentals is accompanied by a splendid Ether price run. As previously reported by CryptoComes, the ETH/USD price revisited a two-year high on $440 on August 15th, 2020.