The entire Ethereum and cryptocurrency ecosystem are gearing up for the long-awaited EIP 1559 upgrade (London Hardfork) set to go live on August 5. The potential upgrade amongst the broader changes it is set to usher in is similarly billed to make the two gas tokens GST2 and CHI useless.
Unveiled by the 1inch Network, the upgrade and its changes of the current fee structure will cause both the GST2- an Ethereum gas token and its own developed CHI token. Both digital tokens are used to incentivise users to remove data from the network, which they no longer need with the new system billed to be ushered in by the EIP 1559 protocol.
The eventual plunge of the token into obsolescence does not imply they were not important in practice, according to Ethereum developer Tim Beiko. Beiko noted that the gas tokens are being exploited by developers who use any reduction in fees to fill the network with a bunch of junk data.
The London Hardfork puts users more in control as a base gas fee is proposed, and the model that tends to favour miners more will also fizzle out. While the CHI token will become obsolete, the 1inch protocol has chosen alternative pathways to incentivise those in its ecosystem whom the token status will impact.
In the broader scheme of things, the London Hardfork, which is set to go live at block number 12,965,000, is a major precursor to the eventual launch of the Proof of Stake (PoS) protocol, Ethereum 2.0. The launch of this PoS protocol will bring a more sustainable solution to the core challenges of today’s Ethereum blockchain. This includes lack of scalability, network congestion, and high gas fees. The backing for the Ethereum 2.0 launch is showcased by increasing the growing deposits into the protocol’s contract address.
The entirety of bullish fundamentals in future upgrades hovering around the Ethereum network has been tagged as a viable sentiment booster for investors to stack up the blockchain’s native crypto, ETH.
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