Ethereum London hardfork will crash some tokens – Bits Media

Activation of the London Hardford on the Ethereum network is scheduled for the first week of August. However, Ethereum developer Tim Beiko said, that after the update, some tokens will become completely useless.

London Harder includes the proposal of EIP-1559, which implies the destruction of ETH when paying commissions. This should reduce the size of the transaction commissions. However, in addition to the EIP-1559, there is also an eIP-3529 proposal in the update, in which there is a refusal to reimburse gas.

“How Ethereum works, If you store data on the network? When you remove the data, then get a small gas compensation. This is done for that, To stimulate the developers to "clean up" the network ", - said the developer of Ethereum Tim Beiko (Beiko team).

The idea sounds good, But in practice, the developers used this mechanism to make a profit. When the commission on the Ethereum network was low, They filled the network with "garbage data", and then, When the commissions grew, data was removed from the network and received gas reimbursement.

Several "gas tokens" were built on this mechanism, like gst2 or chi. for instance, Now the cost of GST2 is about $200, And before the approval of the hardford London, its price reached $600. After the update, the gas reimbursement mechanism will be disconnected and such tokens will stop working.

“They will become useless after updating London. But will their price fall to zero or not me, naturally, I can’t say - the market is often very irrational ", - noted Beiko.

Previously, Tim Beiko proposed a block for activating the London hardforte on the Ethereum network. In his opinion, The update should be activated on the block 12 965 000, which the, as expected, will be mined 4 August.