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ETH Hard Fork Proponents Want to End EIP-1559

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Proponents of a split on the Ethereum network have caused a new controversy. After taking a stand against The Merge, the group now wants to abolish EIP-1559, passed in March 2021.

EIP started the process of burning Ether (ETH), which reduced fees for blockchain users. However, it also hurt the income of miners, who were against its approval at the time.

Profile on twitter called EthereumPOW Official released a long explanation of the proposal. According to this profile, the Ethereum Foundation abandoned the decentralization of the network in exchange for mining via Proof of Stake (PoS).

Therefore, the group plans to bring this aspect back and keep Ethereum “decentralized”.

Criticism of EIP-1559 and new goals

According to the profile, EIP-1559 was an attempt by the Ethereum foundation to build an optimistic narrative at the expense of miners. In this sense, the profile accuses the Foundation of not having heard the opinion of the miners regarding the proposal.

On the Twitter thread, the profile accuses the Foundation and its members of being “elites” with the aim of suppressing the voice of miners. At the same time, the profile says that miners are a “political force that “should exert some political power and influence” to maintain an inclusive political system.

Claiming to be a “truly decentralized community of volunteers”, EthereumPoW has assured that the new token will not be pre-mined. That is, creators will not issue tokens in advance and distribute them to network leaders. This practice took place at the launch of Ethereum in 2015 and is heavily criticized, especially by bitcoiners.

The profile also states that there will be no inflation on the new network, which will make EthereumPoW a truly scarce token. And, naturally, the group intends to maintain the Proof of Work (PoW) consensus on the new network.

Abolition of EIP-1559

The profile also said that it aspires to become completely autonomous and self-sustaining, devoid of any entity controlling the blockchain. According to the plan, the idea is that this will happen within three years after the launch of the network.

But above all, the profile claims that it does not intend to put any group above the other. Therefore, claiming damages to miners, he proposed the end of EIP-1559.

“Abolition of EIP-1559. In a truly open and inclusive system/society, there is no justification for punishing one group of participants in favor of another. We will never idolize leaders, unlike our predecessors. We strive to be an enlightened society.”

The main supporter of the hard fork is Chinese miner Chandler Guo, who has great influence among miners. As Guo explained to Bloomberg, a group of mining equipment manufacturers approached him to offer support for the new network.

While Guo is leading the way, other large companies have already voiced their support for the split project. Derivatives platform BitMEX, for example, has launched a futures contract (ETPHOW) allowing speculation about the future token. Exchange Poloniex has stated that it intends to support token trading.

In defense of The Merge

However, most of the big Ethereum projects sided with the Ethereum Foundation and Vitalik Buterin. That is, these entities plan to support The Merge and operate exclusively on the Ethereum network.

The main support in this regard came from Tether and Circle, issuers of the largest stablecoins on the market – USDT and USDC, respectively. Both companies have already made it clear that their stablecoins will not operate on an alternative network.

Chainlink, Ethereum’s main oracle service, will also not support the Ethereum split, which is set to take place on September 15. Even without this support, EthereumPoW proponents are already moving.

The five most important questions about the ETH merge

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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