This article originally appeared in Valid Points, CoinDesk’s weekly newsletter breaking down Ethereum 2.0 and its sweeping impact on crypto markets. Subscribe to Valid Points here.
While weeks and months in crypto often feel like years, it has only been 60 days since the hard fork that contained EIP 1559 was implemented on Ethereum’s mainnet. A world of data regarding EIP 1559 has surfaced, but ultimately the upgrade is still in its infancy.
In fact, a few weeks ago, I wrote about Nic Carter’s somewhat overly eager Ethereum takeaways and how it was probably too early to estimate EIP 1559′s impact on the network. However, this week I am changing my tone a bit and looking at the potential implications of the upgrade’s base fee burn and its effect on the longevity of Ethereum.
At a very high level, under proof-of-work (PoW) and proof-of-stake (PoS), Ethereum uses block rewards to incentivize miners and validators of the chain….