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The long-awaited EIP-1559 update is now only 26 days away.
The long-awaited London update for the Ethereum network is getting closer, with the code being released this week to the final testnet.
Following the introduction of the Rinkeby testnet on Thursday, Ethereum’s London hard fork, which will usher in the EIP-1559 upgrade, has been rescheduled until August 4.
Tim Beiko, an Ethereum engineer, issued a testnet update verifying that the code has been properly distributed to all three testnets.
And we are live 😁🇬🇧 https://t.co/a5blKgbZym
All three testnets have now successfully upgraded to London 🎉
Note: because of OpenEthereum being deprecated after London, a block hasn’t been set for Kovan yet, and it will likely upgrade after mainnet. https://t.co/rCnLDMjxZj
— Tim Beiko | timbeiko.eth 🦇🔊 (@TimBeiko) July 8, 2021
The mainnet will be launched in block 12965000, with an expected launch date of August 4. The first block was generated on the Ropsten testnet on June 24, and the hard fork was implemented on the Goerli testnet on June 30. Rinkeby is the penultimate stage of testing before the mainnet goes live.
The London upgrade has been named after the second-annual Ethereum developer’s conference in 2015. It may take the network into a deflationary state through the adjustment of the current auction mechanism for network fees. The EIP will introduce a “base fee” instead of the existing first-price auction fee. According to Ethereum software solutions firm ConsenSys, in theory, the more transactions that occur, the more deflationary pressure that the burning of the base fee will have on the overall Ethereum supply.
However, the EIP-1559 modification would not necessarily result in lower gas prices, as many had hoped. ConsenSys confirmed this in a guide to the upgrading posted last month, however they did hint that costs may be reduced slightly:
“As a side effect of a more predictable base fee, EIP-1559 may lead to some reduction in gas prices if we assume that fee predictability means users will overpay for gas less frequently.”
The upgrade will see some of the transaction fees burned, which will have an effect on the supply of Ethereum over time. A website has been set up to see this mechanism in action on the various testnets. At the time of writing, about 89,000 ETH had been burned on the testnets, which was theoretically worth around $185 million at current rates.
When the network transitions from mining to proof-of-stake consensus in the later half of 2022, the system’s deflationary tendencies may be accentuated.