The Ethereum Foundation makes it clear that the upcoming Merge upgrade won’t make gas prices cheaper.

Date:

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The Merge will still save an estimated 99.5% of the energy used by the network.

The Ethereum Foundation updated its statement on Wednesday to clarify that the future “Merge” proof-of-stake temporary upgrade will not lower gas fees. This was stated by the Ethereum Foundation in relation to:

“The relationship between network demand and network capacity determines gas prices. While switching from proof-of-work to proof-of-stake for consensus, The Merge does not dramatically alter any factors that directly affect network performance or capacity.”

According to The Merge, which wants to integrate the present Ethereum main net execution layer with its brand-new proof-of-stake consensus layer, the Beacon Chain, energy-intensive mining won’t be necessary. Within the third or last quarter of 2022, it is anticipated to touch down.

Despite the fact that many traders and investors alike purchased Ether in preparation for the Merge update, some seem to have done so under the mistaken belief that the network’s capacity would increase after the upgrade went live.

There aren’t any initial staking requirements for Ether, and everyone is free to run a node or sync their own self-verified copy of Ethereum. Staked Ether cannot be withdrawn until the following Shanghai update is enabled.

Benefits for liquid ETH, such as fee tips, will, nevertheless, be available immediately soon. To prevent a potential liquidity crisis, withdrawals from the validator will be rate-limited after it has been established.

After the Merge, transactions won’t move any faster either. To attract finance, the network’s APR returns are anticipated to climb by 50% after the merger.

The Merge, which is planned to have minimal downtime during the transition, is now being developed by client developers with a possible completion date of September 19 in sight.

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Mufasa
Mufasa
Mufasa is the lead writer at CryptoMufasa who likes to share all the latest info on the crypto world with you! Mufasa Enjoys enjoys a good read and recommendations so don't forget to comment on the posts and let him know.

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