There will be no more mining when ETH 2.0 comes around. Makes so much more sense to put the money back in the pockets of the investors and not the pockets of the chip makers and electric companies.

I have a feeling miners will continue mining ETH 2.0 Classic.

We saw how that worked out for Ethereum classic. They will also have to get rid of the difficulty bomb.

Ya I'm not sure how long lasting or successful it will be but I can definitely see a group of miners continuing to run it as a PoW chain. Getting rid of the difficulty bomb should be an easy enough fork that you'd think the miners would all be in alignment over.

Is 2% to put money into account and 2% to buy normal in this space? Then to move it to a wallet I tested $20 and it cost me $5.

It would be nice to have more details about what you did where, but my short answers are no, no, and yes (for ETH).

The following "Crypto exchange fee summary" comes from https://www.cointracker.io/blog/2019...fee-comparison:
• Trading fees vary by more than an order of magnitude, from 0.1% to more than 1% on Coinbase and Gemini
• Bibox, Binance, Coinspot, HitBTC, and Kucoin offered the lowest taker fee of the surveyed exchanges at 0.1%. Binance and Bibox offer even lower rates when paying with their exchange tokens
• Most exchanges do not charge fees on deposits made via Bank ACH or direct cryptocurrency deposits, but may typically charge additional fees for purchases/deposits made via wire transfer or credit cards
• Cryptocurrency withdrawal fees are typically limited to blockchain transaction costs, but these can vary considerably depending on the cryptocurrency

3k ETH party.

Bow chicka wow wow.

Anyone else make it to ETHDenver?

wen Merge

¯\_(ツ)_/¯

https://polymarket.com/market-group/ethereum-merge-pos

Merge in August, according to Vitalik.

Assuming no problems. Running through tests on testnets over next few months. Ropsten soon.

Anyone else excited for the merger?

With proof of work, currently 5.4m ETH are issued a year to miners, much of which needs to be sold to pay for electricity costs and equipment. Post merger, there will be a reduction in issuance to 0.5m ETH. The removal of miners from the system makes ETH either disinflationary or outright deflationary, as ETH is currently being burned with each transaction. This is roughly the equivalent of 12 years of btc issuance reduction. So far in Bitcoin's history, each halvening cycle and reduction in supply has been very beneficial for its price action.

The remaining 0.5m ETH will be distributed amongst those that are staking ETH to validate the network. Projections are 7-12% yield for those staking post merge. It seems critical to note that miners needed to sell their ETH to pay for costs, those staking have no costs and are incentivized to hold to continue compounding.

Ultimately, ETH only succeeds in the long run if the network continues to be adopted. Short term, this is a very powerful mechanism that should propel price and shift a lot of the money going towards miners and energy companies to those staking ETH and more broadly, anyone holding ETH.

I staked a little when Cuban was hyping it because he has a lot of money.

what do you think eth2 will do for fees?

will it still cost me $40 to buy a $5 nft on opensea?

No change afaik. That comes with sharding that is supposed to come in 2023.

Kinda. I think the answer is both. I think the base fee is burned but if people pay a surcharge (priority tx fee) the extra amount, known as a tip, gets forwarded to the stakers.

Could be wrong, but that's what I remember reading.

So all that functionally means to me is that when the merge or sharding is enabled, the total fee amount per block will likely go up, but by a rather small number relative to the merge upgrade itself considering the POS switch and the 90% issuance decrease.


Hard to say. The merge won't do anything. But with sharding and the increase from 17 tps to 100k tps what the net results will be for the ecosystem are difficult to say. There's some evidence to suggest that any amount of tps eventually just gets used for whatever purpose leading to a fee normalization at any tps (why completely centralized Solana has had so many blockchain issues). Or potentially what I just said isn't entirely true and fees go down a lot for some other reason.

It does seem to be there has to be at least some base cost to prohibit spam.

Ultimately, I don't know the answer and it's all an interesting experiment just to watch personally.

I'm very excited personally. I'm rather irritated by how slowly it's all coming but glad for the day that it finally does come. It is a stark contrast in development to Bitcoin. I think it's good that both exist the way that they do. If ETH2.0 becomes a mega failure, Bitcoin is there to win the day. If ETH2.0 is wildly successful, it will provide a lot of much needed smart contract services to the world on cutting edge blockchain technology. To me, this just makes the overall cryptocurrency landscape more robust.

Related issue to the merge but I'm also irritated by how slow the merge withdrawals will be. Recirculating earned rewards could take 2 years from now which is pretty ridiculous.

It's for these reasons that I lean mostly on Bitcoin for my core asset holdings but do own a sizable percentage worth of Ethereum because I think it's a worthwhile and healthy gamble. I'm also excited from a selfish perspective to be able to earn rewards while supporting the network with nodes - something I cannot do with Bitcoin.

I don't think ETH/BTC are really competing. If ETH 2.0 flops, another L1 will emerge as the leader and take that market share.

I'm actually quite pleased with how they are releasing the merge withdrawals over time with a queue system. This will maintain some sort of price stability before/during/after the merger. Having a slow release drip out coinciding with the issuance declining will mute the effects in the short/medium term, rather than having the largest unlock of coins of all time at launch coupled with the largest decrease in issuance take place after for the next year.

Base layer transaction improvements are so far off it's not even worth considering imo. But layer-2 scaling will hopefully be the driving narrative between ETH2 Merge -> Sharding implementation. Polyna writes all things scaling and is a good follow if you don't already do so.

I'll have to go back and verify, but I thought I read something that part of the "90% ETH issuance reduction" is due to the fact that the rewards are locked up for a period of time meaning the 90% reduction is just temporary and then there will be a supply glut hitting the market eventually.

Mostly agreed. BTC & ETH make up 90% of my portfolio. Wasted some time shitcoining in 2021 which likely would have been better off just stashing as cash for deep corrections like we find ourselves in now. All cycles eventually lead back to BTC/ETH it seems. I'd like to find a beaten down shitcoin that will rise to "blue chip" status in the next cycle (only BTC/ETH currently) - could be AVAX or an eventual MetaMask token based on simplified layer-1 logic of "where is user demand equating to protocol fee revenue?"

I guess semi-controversial take but if ETH flops, then I'm net bearish on smart contract platforms relative to Bitcoin in at least the medium term. It's not that I think that smart contract platforms won't exist or won't provide value, it's just that I don't think that L1s will scale in any reasonable time frame from that point forward and L2s will continue to have a host of security vulnerabilities plaguing that sector for quite some time.

The slow drip has to exist, but that doesn't mean I can't also find it annoying. It is pretty ****ing annoying lol. That coupled with the rather large delays in development and some level of uncertainty from lead devs around development are both a bit unnerving but I suppose at least intellectually honest.


The 90% ETH issuance reduction is actually real, it has nothing to do with delayed issuance of the beacon chain. Someone just wrote up above that it's going from 5.4m ETH/year to about 0.5m eth. I don't know if that's what it is, but it sounds about correct. There is a pretty cool website you can look at:

https://ultrasound.money/

ETH will, all else equal, become deflationary once the merge hits. Currently ETH inflation is +2.0% and with the merge simulated ETH goes to -2.0% based on it's history since EIP-1559 was implemented. This will almost assuredly have some pretty major short term impact on price if BTC is any guide. These things, historically speaking, tend to never be fully priced in until they are.

And yeah, I'm about 95% BTC/ETH. I think most (smart?) people go through some kind of shitcoining phase before realizing trying to outperform BTC or ETH is extremely difficult. I had some shitcoin bullshitery from 2013-2018. I'm mostly out. I have a few tiny positions and there's one major shitcoin that I'm gambling big on presently as a buy and hold but not going to / trying to shill it here, especially when almost any shitcoin bet is hugely speculative.

I guess I just don't find it annoying at all since I don't really plan on selling it myself. Bought in 2017 and would like to see the full effects of the triple halving and scaling via sharding take place for a couple years (while staking and earning yield) before touching it. I can see it being annoying if people needed the money for something or just wanted to sell.

The 90% ETH issuance reduction is definitely real. The reason this can occur, is because most miner expenses were electricity. Removing the energy demands almost completely from the protocol allows a lot less issuance needed as a lot of the ETH generated by miners was being sold and going to electric companies.

I was 80%/20% btc/eth for most of my crypto investing lifespan. Sold a bunch last year into fiat and now buying back exclusively ETH. It's shifted to 40%/60% and if dips keep happening, will eventually be 20%/80%. I'm pretty bullish on the mechanics of the merger and think looking back, <2k eth a few months before the merger will look ridiculous.

If id invest in anything that feels like a safe bet within the cryptosphere i would go for ethereum as well, out of the smartcontract platforms its either ethereum or polygon. In long term perspective thats where id put my money, right now everything is on sale as well

Guarantees of above-market interest returns simply for pledging your money - sounds familiar. Think I saw it on one of those recurring CNBC hour-long documentaries. History sure has a way of repeating itself when people reach for yield.

Refute it numerically rather than baseless fud? Issuance is lower and re-distributed away from miners to stakers. Not sure what’s missing. There are no guarantees whatsoever. You can put in usd to buy 100 eth, get the 8 eth yield year end and lose money because eth price fell. Not sure where you are getting this info from unless you simply just made it up, because no one has said it’s a guaranteed above market return.