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Ethereum’s London Hard Fork With EIP 1559 Fee Market to Go Live This July

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The EIP 1559 is a welcome move for Ethereum users that standardize the transaction fee across the network and reduces volatility. However, mining pools have placed a strong opposition to it.

As per the latest development, July 2021 is the scheduled period when the Ethereum Improvement Protocol (EIP) 1559 will go live. As per Ethereum’s core developers’ call on Friday, March 5th, five other EIPs along with EIP 1559 are likely to join the London hard fork.

The Ethereum fraternity has been eagerly awaiting the launch of EIP 1559 amind issues of the transaction fee. The ongoing EIP 1559 helps to lower the volatility of transaction fees on the Ethereum blockchain. Besides, it also fixes several ongoing issues with Ethereum’s user experience.

Traditionally, a user sends the gas fee to the miner to include the transaction in the block. However, with the EIP 1559 implementation, the gas fee shall go to the network itself in the form of “burn”. The “burn” is also dubbed as basefee with only an optional tip paid to the miners.

The Ethereum algorithm sets the “burn” fee thereby making it easier for users to pay a fair price. Thus, EIP 1559 replaces the supply/demand auction-style system with a standard rate implementation across the entire network. Ethereum creators are confident that the proposal will be “positive ono the long term price” of Ethereum. They say that a lower and predictable gas fee ensures that Ethereum isn’t only for the rich.

This new proposal has received solid support from users and the creators of Ethereum. However, it has garnered strong opposition from the miners and the mining pools who have been on the receiving end.

ETH Miners Place A Solid Opposition

Ethereum miners have enjoyed solid revenues recently on the backdrop of the high DeFi activity on the Ethereum blockchain. In February last month, the total mining revenue clocked a massive $1.3 billion with the average transaction fee striking an all-time high of over $37. As per data by CoinMetrics, 50% of the revenue came from fees alone.

The surge in transaction fees and the ETH price has shot up the network has power to more than 100% in a year’s time. Flexpool, a minority mining pool, has launched a marketing campaign against the EIP. It has also received support from majority pools like sparkPool and Ethermine.

Nearly 60% of the Ethereum hash power is currently against the implementation of the new proposal. Interestingly, F2Pool is the only largest pool in favor of the EIP with 10% hash power.

However, mining pools have few options to stop the EIP 1559 implementation. The bigger danger that currently hovers around is the 51% attack on the Ethereum network. However, the chances of this remain unlikely at this moment considering different financial incentives for not attacking the network.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.



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Reef Finance to Launch Its Reef Chain Mainnet by May 2021

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Following the launch of the Reef Chain Mainnet, DeFi users can gain a smart decentralized finance exposure with interoperability features across multiple chains including Ethereum, Polkadot, Cosmos, Avalanche, and the Binance Smart Chain amongst others.

The Reef Finance team is set to launch its Reef Chain Mainnet by May following the completion of the final checks on the current Maldives testnet. As contained in a press release shared with Coinspeaker, the exact date of the mainnet launch is dependent on the outcome of the ongoing tests being conducted at this time. Despite the intense checks, the Reef Finance team is optimistic they will be completed before the launch.

The Decentralized Finance (DeFi) ecosystem of today has been gaining massive traction which puts a strain on existing blockchain infrastructures supporting smart contracts. The Ethereum blockchain now has so much congestion that leads to an increase in transaction or gas fees. A relatively newer blockchain network, the Binance Smart Chain which entered the space with a promising solution is now crumbling due to its inability to scale properly.

Reef Finance is a Substrate-based blockchain network that makes DeFi easy. It was designed to address the woes of the existing chains supporting decentralized finance infrastructures. As contained in the press release, the launch of Reef Chain is aimed at enabling DeFi developers to make use of a highly scalable and fully EVM-compatible blockchain that is integrated into the Polkadot ecosystem. Reef Chain is set to be initially floated as a standalone blockchain based on the Substrate framework, a feature that will make it easy to plug into the Polkadot parachain ecosystem.

“Demand for DeFi is insatiable,” said Denko Mancheski, CEO at Reef Finance. “First it was Ethereum and skyrocketing gas fees, now we are seeing that even others like BSC are starting to have issues with performance. Reef Chain’s launch couldn’t have come at a better time.”

As a way to see to a successful network ecosystem, Reef Finance says it has the right model to support developers who wish to build on the Reef Chain. Through the robust community of users, investors, and media partners amongst others, DeFi product creators can find true success with Reef Finance.

“We know the struggles of up and coming developers all too well, and a lot of the time, technical skills are only a part of the equation,” added Mancheski. “By tapping into Reef’s business network, DeFi builders will multiply their chances of success.”

Reef Chain Mainnet Launch and the Interoperability Advantage

Following the launch of the Reef Chain Mainnet, DeFi users can gain a smart decentralized finance exposure with interoperability features across multiple chains including Ethereum, Polkadot, Cosmos, Avalanche, and the Binance Smart Chain amongst others.

The Reef Chain will be governed using the REEF tokens which can be used for staking and community governance. Through the advanced interoperability features of the chain, a liquidity bridge will be launched to wrap existing DeFi assets and transfer liquidity from Ethereum to the Reef chain.

The advantage the Reef Chain aims to introduce will cut across all DeFi stakeholders ranging from users to developers as a whole.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.



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Not so safe? SafeMoon’s parabolic rally isn’t sustainable, traders warn

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SafeMoon, the token on Binance Smart Chain widely recognized as the Tiktok meme coin, is seeing massive volatility after its massive gains in the past week.

According to the data from Dex.Guru, which tracks alternative cryptocurrencies on various blockchains, the price of SafeMoon dropped by nearly 50% in the last two days from $0.0000074 to $0.0000045.

Does the SafeMoon rally have any strength?

SafeMoon is a cryptocurrency on Binance Smart Chain that started out at a low market cap at around $50,000. The price and market capitalization of Safemoon went parabolic after growing popularity on TikTok.

On Dex.Guru, the price of SafeMoon rose from $0.00000029 to $0.0000074, by more than 2,200% in merely three weeks.

Safemoon 1-day candle chart. Source: Tradingview

Whether there is any substance or fundamental catalysts behind the SafeMoon rally remains to be seen.

On April 22, the SafeMoon team announced that the cryptocurrency is being flooded with listing offers from large Asian exchanges.

The team said one exchange in Asia that is currently in talks with SafeMoon is the 36th biggest in the world.

The team said:

“#SAFEMOON is currently inundated with exchange offers, a large Asian exchange is imminently being announced… this will allow Asian communities to acquire Safemoon, the exchange has $857 MILLION 24 hour trading volume and is the 36th LARGEST in the world.”

Nevertheless, traders emphasized the massive volatility of SafeMoon despite its relatively high liquidity compared to other tokens that are not listed on major exchanges.

Cantering Clark, a derivatives trader, said that the correction of SafeMoon restores balance in the universe, implying that the rally was not sustainable.

Luke Martin, a well known cryptocurrency trader, also described the price trend of SafeMoon as “unSAFEMOON” after it dropped 65% in a short period on April 22.

One reason why rally might fade

SafeMoon rallied strongly within a period of a few weeks, surging from near zero to $5 billion in valuation at its peak.

Cryptocurrency researcher Larry Cermak noted that the SafeMoon livestream had 50,000 live viewers. 

But Cermak also pointed out that if the interest around Binance Smart Chain persists, BSC could struggle to meet the surging user demand, which then could lead to higher fees that may drive away users.

He said:

“DeBank is saying that PancakeSwap had 700k unique addresses today and the SafeMoon livestream had 50k live viewers. Wtf is going on. I am very sure about one thing though – BSC won’t be able to handle the current activity for much longer and will eventually be unusable. When ponzis start consistently losing money, people will lose interest too. Only question is what happens after that.”

As Cointelegraph reported, PancakeSwap, the biggest automated market maker on Binance Smart Chain, overtook Ethereum’s user activity as the demand skyrocketed at the peak of the SafeMoon rally.