Ethereum recently released new announcement to enable London hard fork upgrade. Ethereum will launch a new mainnet on August 4 that will include one of its highly anticipated upgrades, EIP-1559.
ETH successfully passed the EIP-1559 upgrade after the Ropsten testnet two weeks ago. The Ethereum blockchain, with the upgrade included in the codename London update, will introduce a gas-burning fee for each transaction. The cost of gas brought in will become predictable, thus technically increasing the shortage of Ether.
The EIP-1559 update for the Ethereum blockchain has sparked controversy. It would make it easier to determine calculations for the gas price of a transaction and effectively lower the average gas price by eliminating false estimates per bid, so it became the subject of discussion. However, considering the completion of the Ethereum 2.0 update will also affect gas fees, the decrease in gas price will be effective in the short term. Fee burning will also effectively reduce the supply of ETH, creating the conditions for Ethereum scarcity.
Once the Ethereum mainnet gains enough traction for effectiveness with EIP-1559, the burn rate will override the issuance rate, hence deflation. The London hard fork also includes four improvement proposals: EIP-3198, EIP-3529, EIP-3541 and EIP-3554.
The estimated activation time of the proposed mainnet will be between 13:00 UTC and 17:00 UTC on August 4. However, the proposal is still controversial, and Tim Beiko, the variety and coordinator working on EIP-1559, posted the pull request on Github.
Beiko tweeted on the subject:
Yes, London should happen on August 4th unless someone objects in the next 24 hours. Several client teams have already confirmed this, but we want to make sure no one has serious objections.
The improvement proposal is expected to be activated sometime in mid-July, although some concerns from the ETH community think it will delay the update a bit. After the activation of EIP-1559 alongside the London hard fork, the merging of Ethereum 2.0, where the Beacon Chain will be placed on the Ethereum mainnet, will be performed and the Proof-of-Stake will be allowed to run on the Ethereum mainnet.