The Ethereum Foundation has revealed that the highly-anticipated upgrade of its network will not cause a reduction in gas fees. Dubbed the ‘Merge’, the upgrade is expected to see the network transition to a proof-of-stake (PoS) model, amongst other changes. But while it has been widely rumoured that the upgrade will impact Ethereum gas fees, a Wednesday statement by Ethereum Foundation has shed more light on that notion. Part of the statement read:
“The Merge will not significantly change any parameters that directly influence network capacity or throughput.”
What to expect from Ethereum Merge
It should be noted that gas fees are usually proportional to a network’s demand and capacity. So, it is expected that since the network is transitioning to PoS, there would be no need for energy-intensive mining. This has led many traders and investors to believe that the cost of transactions will reduce significantly as a result.
Additionally, some investors are stacking up on their Ether (ETH) holdings ahead of the Merge. However, most of the purchases are simply based on misinformation about how the upgrade may affect the network’s capacity. Most of the buyers feel that the capacity of the Ethereum network will surge greatly as well after the upgrade. But that too may not happen.
What can be expected, however, is that transactions will be carried out at significantly faster rates after the Ethereum Merge. Also, ETH holders can rest assured of their funds. That is, any funds they hold in their wallets before the Merge will remain intact and unaffected thereafter. This is even when the holders do not carry out any upgrade actions of their own.
Certainly, there will be some attempts by bad actors to take advantage of the transition. But Ethereum Foundation has warned holders to be wary of their antics while also insisting that there’ll be no ETH2.0 tokens. All things being equal, the upgrade is expected to go live by September.