On Wednesday, the Ethereum Foundation announced that with the long-awaited transition from proof-of-work (PoW) to proof-of-stake (PoW) just 29 days away, The Merge has decided that on-chain fees will not be reduced; in The Merge’s update from the Ethereum Foundation, within the last month, Ethereum Network Costs has printed some of the lowest on-chain fees since 2020.
Ethereum Foundation Clarifies ‘Gas Fees Are a Product of Network Demand’ – The Merge Does Not Significantly Change Any Parameters That Directly Influence Network Capacity or Throughput
The Ethereum Foundation wants to make the public aware that while The Merge is moving from PoW to PoS, the assumption that fees will go down is false. This statement has been added to the Foundation’s The Merge definition and overview hosted atethereum.org.
This page has been updated several times, with the last update occurring on August 16, 2022. Ethereum developers will convene for a meeting onAugust 18, 2022.
“Gas prices are a product of network demand relative to network capacity,” explains the website’s newly updatedoverview.” The Merge deprecates the use of proof-of-work and will move to proof-of-stake for consensus, but will not significantly change parameters that directly impact network capacity or throughput.”
After The Merge, Ethereum’s transaction fees will remain the same, but users who want lower fees will need to take advantage of Layer 2 (L2) scaling solutions and wait for further Ethereum upgrades. After The Merge, Ethereum will The Surge, The Verge, The Purge, and finally The Splurge will be implemented.
The Surge aims to leverage Zero Knowledge Rollup (ZK-rollup)via sharding technologyto help improve scalingEthereum’s The Verge transition will applyTo achieve statelessness using the Merkle proof upgrade, the Verkle treeapplies. While fees will not be reduced immediately, Ethereum’s on-chain fees are at their lowest rate since 2020.
At the time of writing on August 17, the average network fee today is 0.0012 ether, or $2.28 per transfer, according to bitinfocharts.com’sstatistics. Etherscan.io’s. Gas Trackeris even lower, with a higher commission of about 22gwei or $0.85 per transaction.
Opensea marketplace sales are $2.90, Uniswap swaps are $7.47, and tether (USDT) transfers like ERC20 are $2.19 per transfer on Wednesday.L2 fees are lowest at Loopring and Zksync, where Cost could be between $0.04 and $0.06 to send ether.
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