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On Sunday, the London hard fork of Ethereum went live. The transition has significant ramifications for mining pools, which have begun to adopt miner extractable value solutions in order to generate revenue.
Eden Network, an Ethereum transaction protocol, has attracted $17.4 million in seed funding from some of blockchain’s largest venture funds, highlighting the need to address persistent difficulties confronting the block production economy.
The funds will be used to support the adoption of Eden Network among developers, miners and users, the company announced Wednesday. The network claims all users will benefit from its ordering rules thanks to an improved block production system.
The investment round was led by Multicoin Capital with participation from Alameda Research, Jump Capital, Wintermute, GSR and DeFiance Capital. Genesis Capital executive Joshua Lim and Andre Cronje of Yearn.finance also participated as angel investors.
Eden officially launched along with Ethereum’s London hard fork on Sunday, claiming to represent more than half of the network’s hash power. That assertion means more Eden blocks are being produced on Ethereum than non-Eden blocks. Users can stake the protocol’s native EDEN tokens to gain access to priority block space and the Eden Relay Remote Procedure Call, which allows transactions to be submitted privately.
Eden is seeking to democratise miner extractable revenue (MEV), which evaluates a miner’s ability to earn by arbitrarily determining where and when transactions take place. Researchers have previously discovered Ethereum block manipulation as a technique to abuse some DeFi protocols, as Cointelegraph revealed in October 2020. Following the London hard fork, numerous mining pools have began to use MEV to enhance their nett revenues. This action may directly contradict EIP-1559’s promise of reducing gas prices.
Nonetheless, the anticipation and activation of the London hard fork have been overwhelmingly positive for Ether (ETH). Last week, the second-largest cryptocurrency surpassed $4,000 for the first time since May. Bloomberg senior commodity expert Mike McGlone recently stated that $5,000 ETH is likely in the near term. Following a significant flash fall for ETH and the larger cryptocurrency market on Tuesday, the picture is unlikely to have changed.