Ethereum’s forthcoming London upgrade, containing the highly-anticipated Ethereum Improvement Proposal (EIP) 1559, has been deployed on the Ropsten testnet.
Following the launch on Ropsten on Thursday, London is now expected to progress through Ethereum’s Goerli, Rinkeby and Kovan testnets at roughly weekly intervals — from which point the Ethereum community expects a date for mainnet deployment to firm up.
The new upgrade will see transaction fees burned. According to the EIP-1559 tracking website Watch the Burn, roughly 88,500 testnet Ether (ETH), nominally worth $177.6 million, has been burned on Ropsten over the day since London’s deployment.
The high rate of Ether being burned on Ropsten has reignited discussion regarding whether EIP-1559 will render Ethereum deflationary — where more ETH is destroyed than new supply enters into circulation — and what this could mean for Ether’s price moving forward.
700 per day is the estimated low. Will burn 250000 ETH annually. Decreasing supply. 6000 per day will burn 2 million each year. Excited.— Caesar’s Palace (@CeasarBlue92) June 24, 2021
However, EIP-1559 is not the only upgrade that the community is looking forward to from London, with David Mihal of CryptoFees describing EIP-3074 as “fixing one of Ethereum’s most overlooked security issues” to do with approvals.
One of the most overlooked security issues in Ethereum is ERC20 approvals.— David Mihal (@dmihal) June 24, 2021
I've given up on my push for ERC777 to fix this... Our next chance to fix this is EIP-3074.
3074 will allow a user to approve a transfer, execute an action, then revoke the approval all in 1 transaction. https://t.co/zk52JtYaAj
Coincidentally or not, crypto data aggregator CryptoQuant identified that 100,000 Ether had been deposited into Eth2’s staking contract around the same time as the launch, worth roughly $200 million.
CryptoQuant also noted that more than 5% of ETH’s supply is currently locked in staking worth approximately $11.75 billion.