How Ethereum Will Be Transformed in 2022

📆 12/29/2021 9:35 AM
📰 CoinDesk

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A look ahead at what 2022 and the impending switch to proof-of-stake will bring to Ethereum. Report by TedDeFi.

With 2021 winding down and 2022 hopefully being the year of the Merge, I wanted to do a deeper dive into five of the top things to expect with Ethereum’s impending transition to proof-of-stake. The Merge itself will not be as initially glamorous as many market participants and outsiders may believe. However, the underlying improvements and the foundation it sets will allow Ethereum to onboard millions of users without sacrificing decentralization.

– An Ethereum research report modeled the impact the combination of EIP 1559 and proof-of-stake will have on ether’s circulating supply. The transaction fee burn combined with lower rewards and ether locked for validating will drive the circulating supply equilibrium down to between 27.3 and 49.5 million ETH. For comparison, the current supply is sitting at 118 million ETH and is still slightly inflationary after the addition of EIP 1559.

Source: Digital Coin News (digitalcoinnews.net)

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