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Ethereum merge will be priced after it goes live -Vitalik Buterin

Published by
Nonhlanhla P Dube

Merge is the Ethereum blockchain’s long-awaited upgrade. With the launching of Merge, the network is intended to transition from a Proof-of-Work (PoW) consensus method to a Proof-of-Stake (PoS) consensus mechanism.

This would effectively eliminate mining from the Ethereum network. As a result, after the Ethereum mainnet update, transaction validity will be entirely dependent on staking.

Merge’s long-awaited release date is set for September 19, 2022. However, its implementation will not result in a complete switch to PoS on the blockchain. This would result in a merger of the ETH mainnet and the Beacon Chain.

In an interview, Ethereum co-founder Vitalik Buterin shared some of the expectations for the imminent move. Buterin noted that the Merge would not instantly impact the network’s current prices following its launch. Buterin claims that the merger’s impact extends beyond market terms to narrative and psychological factors.

The Ethereum blockchain and the Beacon Chain would continue to merge. However, it would not result in a total shift to Proof-of-Stake. Other terms, such as Surge, Purge, Verge, and Splurge, are required for the Merge.

The market is particularly excited about the impending upgrade, which will be released in September. Participants anticipate an instant price surge following the merge’s integration. They would, however, have to wait 6 to 8 months before the price surge could begin.

Normally, a run of the post-cleanup fork would take 6 to 8 months to complete. Following the post-cleanup, Ethereum developers may decide to open withdrawals. In addition, additional Ether would be issued following the post-cleanup stage.

Furthermore, there would be a significant fall in ETH supply following the Merge. This is due to EIP-1559’s proposal to burn ETH rather than distribute tokens to miners. The entire effect would make ETH a deflationary cryptocurrency.

The Impact of the Merger on the Price of Ethereum and its Derivatives

The value of Ethereum would fluctuate, according to Vitalik Buterin’s speech at the ETH Community Conference. However, it would rise as the right market conditions emerge. The Ether price analysis predicts an increase before the Merge and a drop during the Merge.

While Ethereum developers work on the post-cleanup update, staked ETH is likely to remain locked. However, certain cryptocurrency exchanges, including Kraken and Coinbase, have guaranteed their support by allowing the trade of staked ETH prior to the 6-month post-cleanup period.

The trend for Lido Staked ETH (stETH) and Ethereum Classic (ETC) appears to be improving. Their values are rising in tandem with the price of Ether, with ETH, stETH, and ETC records showing price gains of 12%, 11%, and 22%, respectively, in the last 24 hours.

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Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

Published by
Nonhlanhla P Dube
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