The controversy that has developed in the Ethereum crypto community over the future activation of EIP-1559 is leading miners to seek and propose new alternatives to protect their income and deal with the possible burning of the fees proposed by the EIP.
Ethermine, one of the largest mining pools in Ethereum, presented a new proposal that seeks to minimize the impact that EIP-1559 will have on miners' earnings. As the company announced through its Twitter account, the proposal called MEV (Miner Extractable Value) will compensate for the upcoming reduction in mining rewards caused by the activation of EIP-1559.
MEV, which is in beta, will see 80% of mining revenue distributed along with mining block rewards.
Ethereum, the second network blockchain The digital industry's most important cryptocurrency exchange, plans to activate Ethereum Improvement Proposal (EIP) 1559 in July of this year, during the London hard fork. As reported by this media, this improvement proposal, which has the support of developers and the crypto community, seeks to reduce transaction commission fees on the network, establishing the burning of commissions and assigning a kind of tip to miners for their services.
The conditions set by this proposed improvement have caused great concern and distress in the mining community, who criticize the way in which developers will affect their income. Currently, more than 53% of Ethereum miners' earnings come from the commission fees paid by users to confirm their transactions on the network. However, ETH users are being strongly affected by the high fees, which make it unviable to use the network to transact with small amounts of money.
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Alternatives to lower tensions between the community
The controversy caused by the approval of EIP-1559 has led miners to call for the concentration of ETH hash power in Ethermine, as a demonstration of the power that miners can organize within the network. The intention of the miners is to attract the attention of the crypto community and make their opinion heard regarding the proposal.
Ethermine claims that miners' opposition to EIP-1559 is a security issue, considering that low incentives will cause many miners to disconnect from Ethereum due to low profitability, affecting the hash rate and the robustness of the blockchain network.
To mitigate the existing tensions, ETH developers recently submitted another improvement proposal, called EIP-3368, which proposes that miners receive a reward of 3 ETH per block for a period of 2 years, which will then be progressively reduced to 1 ETH, over a period of 2 years while the transition to Ethereum 2.0 is completed. Although it is an improvement proposal that also seeks to reduce commission fees without significantly affecting mining revenues, EIP-3368 does not have enough support in the crypto community to be accepted and activated in the near future.
Moreover, Vitalik Buterin, co-founder of Ethereum, assured that the scaling solution Optimistic Rollups is about to be activated on the network, which will allow it to scale Ethereum “100 times.”
Finally, despite the rejection of Ethermine and other mining pools to EIP-1559, other pools such as F2Pool and Poolin support the activation of this proposal to guarantee the future of the network, which is seeing the migration of several DeFi projects that are choosing to use other more scalable and economical blockchain networks. The latest DeFi project to leave Ethereum is SushiSwap, which is expanding to the Avalanche blockchain.
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