Criticism: Miners Reject New Ethereum Improvement Proposal to Reduce Block Rewards

August 23, 2020 4:14 PM UTC

A new Ethereum improvement proposal (EIP) has been proposed to decrease block reward almost by 75%. EIP-2878 is proposed to preserve the buying power of ETH by minimizing block reward to 0.5 ETH from 2 ETH.

However, industry inside reports reveals that the mining community has shown intense criticism. Miners behind a new proposal are more excited about investors’ concerns, instead of the network’s security, as suggested by opposing members.

Time Beiko, a product manager of PegaSys, thinks “this is much too dramatic of a change, given we’ve gone from 5 to 3 (-40%), then 3 to 2 (-33%), now you are going from 2 to 0.5 (-75%).”

“The biggest consideration, in my opinion, should be the security of the network (i.e. how do we ensure the likelihood of 51% attacks remains low, how do we keep a diverse set of miners on the network, etc).”

Another user reacted to new EIP, “ASICs are highly profitable compared to GPUs. Any reduction in block rewards without an algo change will remove the rest of the GPUs from the network resulting in ASICs totally controlling the network.”

Ethereum Gas Fee Reached All-Time High

Following the growing trend of the network, Ethereum gas fee has also attained an all-time high. On August 12, some traders faced unusual transaction fees on the network, mainly fuelled by an increase in new ICOs and DeFi protocols. 

Usually, Ethereum fees are less costly than Bitcoin fees. However, this changed recently as the network’s gas has been rising since the start of 2020. While pointing toward network fee, Three Arrows Capital founder Su Zhu said, “spending more money on GAS for ethereum than pretty much anything else in real life now.”

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