What’s next after the Ethereum Merge
Vitalik Buterin reminded node operators to update their clients before Sept 6th, ahead of the Ethereum Merge that is expected to come between the 10th and 20th of the month. The Merge is just one part of the “deep changes” that the founder has lined up.
In a tweet, Buterin said “Reminder: even though the merge is coming around Sep 10–20, the beacon chain hard fork is on Sep 6. Make sure to update your clients before then!”
The Bellatrix upgrade is scheduled for epoch 144896 on the Beacon Chain on September 6th, while the TTD value triggering The Merge is expected between September 10th and 20th.
After the Ethereum Merge, there would be many more upgrades to the network: the surge, the verge, the purge, and a splurge, Buterin said in a report from decrypt.
After the Merge comes the Surge, reports decrypt. It refers to the addition of Ethereum sharding, a scaling solution that could further enable cheap layer-2 blockchains, lower the cost of rollups or bundled transactions, and make it easier for users to operate nodes that secure the Ethereum network, the report said.
Why You Should be Watching the Ethereum Merge Closely
Traders could expect continued momentum in the Ethereum ecosystem with opportunities to invest and trade, as the merge with the Beacon Chain shows no signs of delay.
Cointelegraph reported that the Goerli testnet merge has been finalized without any major issues. After several consecutive successes across testnets, the market is pricing in the Merge by mid-September.
We spoke with our VP of Ecosystem , Mitchell Nicholson to discuss how traders and investors could benefit from this recent development. For starters, he highlighted that the successful testnet merges, most recently the Goerli, reduces the technology risks and uncertainty.
“The Merge will enable more momentum in the Ethereum ecosystem, with good opportunities to invest and trade. For example, the LDO has seen significant volume growth since Lido is the largest liquid staking provider. Another project gaining traction is Optimism, which is the leading roll-up scaling solution with a liquid token launched. Similarly, activity in the Arbitrum ecosystem has grown with projects like GMX and Dopex. Most notably, the leading DEX Uniswap is considering turning on a fee switch that would provide fees to UNI token holders,” Nicholson explained.
“In my view, many investors and traders will continue to transition their interest back to the Ethereum ecosystem from Alternative Layer 1s” Nicholson noted.
Sustainable tokenomics
Nicholson also said a successful Merge will result in more sustainable tokenomics for ETH with less inflation since token compensation to validators will be lower than miners. Combined with burns driven by network usage from EIP-1559, net issuance of ETH could converge to zero and become deflationary in the long-run.
He said the Merge could also be good for institutional investors who have an ESG mandate, as it is expected to result in drastically-reduced carbon emissions. While miners consume a substantial amount of power during operations, the footprint from validators will be significantly lower as evidenced by other POS blockchains like Solana and Avalanche.
Before joining WOO, Nicholson held positions as an Economist at the Bank of Canada and a Manager in the Cryptoasset and Blockchain Practice at KPMG Canada.
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