Ethereum’s London upgrade is ready to activate on Thursday, consistent with the countdown available on Ethereum.org. “The London upgrade is scheduled to live on the Ethereum blockchain in August 2021, on block 12,965,000,” Ethereum.org reads. “It will introduce EIP-1559, which reforms the transaction fee market, alongside changes to how gas refunds are handled and therefore the Ice Age schedule.”
Ethereum Improvement Proposal 1559, or EIP-1559, will directly affect how the network handles transaction fees. Going forward, each transaction will burn a base fee, thereby decreasing the asset’s circulating supply and giving users the choice of including a tip to assist incentivize speedier confirmations proportionate to network demand. The London fork will additionally introduce other EIPs, like EIP-3541, consistent with an official web blog post from the Ethereum Foundation in mid-July.
Twitter user Korpi acknowledged a variety of notable points regarding EIP-1559 within a tweet thread on Monday.
“What most are excited about is $ETH burn,” Korpi outlined within the official tweet thread after discussing a variety of other points regarding the Ethereum upgrade. Korpi explained:
“After EIP-1559, a part of the transaction fee is burned and far away from circulation. But it doesn’t suggest that ETH immediately becomes a deflationary asset. For that to happen, ETH burned must be over ETH issued in block rewards.”
Ethereum’s London hard fork is a component of its ETH 2.0 journey – which can ultimately change the network’s consensus algorithm from PoW [Proof-of-Work] to PoS [Proof-of-Stake].