Simple guide to understanding the ETH merge

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Simple guide to understanding the ETH merge

  1. It is a switch from Proof of Work to Proof of Stake consensus algorithm.
  2. The economical footprint of PoS is something like a 99.5% reduction in energy use, so it is more environmentally friendly.
  3. The merge WILL NOT affect fees or throughput (a latter upgrade around sharding targets that).
  4. ETH's issuance rate (about 4.5% inflation), will drop to about 0.5% (coined "triple-halvening"). Factoring in the fee burn, ETH will near 0% inflation or even deflationary over the long term.
  5. The current staked ETH WILL NOT unlock at the merge. The devs are targeting an upgrade in 6+ months to enable withdrawal. Thus, the whole idea that everyone will sell their staked ETH at the merge is not even possible.

submitted by /u/sharkhuh
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