In a demonstration of violence against the implementation of the Ethereum Improvement Proposal (EIP) 1559, Ethereum miners plan on April 1 to direct their hashing power on the Ethermine mining pool that opposes the proposal.
The coordinated action takes 51 hours and means that more than 51% of the network’s hash rate should be used. During this time, the activists plan to analyze what will happen to the Ethereum network under the guise of “educational purposes”.
Let’s move our hash together for 51 hours to https://t.co/6osh2Op6yl April 1st for educational purposes. @etherchain_org @BitsBeTrippin @SonOfATech @maxvoltage @SavageMine @VoskCoin @ Nemisist2 @ notyournormalm1 @ BrandonCoin1 @GuntisVitolins # eip1559 # stopeip1559 #Ethereum
– Red Panda Mining (@RedPandaMining) March 7, 2021
Ethereum miners revolt over EIP 1559
EIP 1559 refers to a proposal to reform the fee market to make major changes to the fees for miners, the wallet UX, as well as the addition of a deflationary combustion mechanism. Its purpose is to address high gas charges, but what is crucial is that implementing it does not necessarily mean lower gas prices for users.
Ethereum miners generally oppose this, as the current bid-based system is exchanged for a set fee, a BASEFEE model, and a small tip to compensate the miners. The result is likely to be a cut in revenue for miners.
The last core developer meeting revealed that the EIP 1559 would be packed with the London fork in July. At this point, a showdown between miners and developers is inevitable.
Michael D. Carter, the host of the YouTube channel Bits Be Trippin, explained the motivation of the movement by demonstrating that miners can coordinate their actions.
“Such a show of force does not attack the network. What it does show, however, is that miners can coordinate and every tick for Ethermine, which is currently less than 40% of the Ethereum network, every tick for 51% shows that hashing power focusing can occur. “
Carter points out that the purpose is to conduct an experiment on the Ethereun network that will show what could happen if miners were to focus their hashing power.
“The moment they are activated, there is the potential for a sharp drop in total revenue, which, coupled with a low price, if that happens, creates a shelf where hash power essentially drops.”
In this scenario, Carter states that there is now an incentive structure in place for a potential attacker to take advantage of the reduced hash performance.
Show of Force will backfire
Reddit user DCinvestor slammed the actions of the Ethereum miners who plan to take part in the April 1st action. He accused her of “having an extractive mindset” that only cares about getting paid. In addition, their actions will harm everyone involved in the short and long term.
“Ethereum is just a network that pays for them. They “love it” because it paid them a lot, but they have no ties to their community, users or apps (b / c according to the f2pool lead, many miners don’t even use the network). “
DCinvestor points out that the miners’ willingness to allow a network attack already isolates them from those who previously agreed to their cause.
Ethereum investors have a bumpy road ahead of them.
Source: ETHUSD on TradingView.com