Ethereum Foundation clarifies that the upcoming Merge upgrade will not reduce gas fees

According to a brand new clarification by the Ethereum Foundation on Wednesday, the community’s upcoming proof-of-stake transitory upgrade — dubbed the “Merge,” — will not reduce gas fees. Regarding this, the Ethereum Foundation wrote: 

“Gas fees are a product of network demand relative to the network’s capacity. The Merge deprecates the use of proof-of-work, transitioning to proof-of-stake for consensus, but does not significantly change any parameters that directly influence network capacity or throughput.”

The Merge, which seeks to hitch the present execution layer of the Ethereum mainnet with its new proof-of-stake consensus layer, the Beacon Chain, will eradicate the want for energy-intensive mining. It is predicted to land inside the third or remaining quarter of 2022. While many buyers and merchants alike have purchased Ether in anticipation of the Merge upgrade, some seem to have executed so beneath misconceptions that the community’s capability will surge as soon as the upgrade is reside. 

For starters, anybody is free to sync their very own self-verified copy of Ethereum or to run a node, with no preliminary Ether staking necessities. With regard to staking, it’s not attainable to withdraw staked Ether till the following Shanghai upgrade goes reside. Though, liquid ETH rewards in the type of charge suggestions will be out there instantly. Validator withdrawals, as soon as reside, will be rate-limited to forestall a possible liquidity disaster.

Transactions will additionally not be noticeably sooner after the Merge. However, post-Merge APR yields on the community are anticipated to extend by 50% in comparison with now to draw capital. Client builders are at present engaged on a tentative deadline of Sept. 19 to finish the Merge, which is designed for zero downtime throughout the transition.

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