Ethereum : Top 10 Features of the Post-PoS Era

The Ethereum merger is one of the most powerful catalysts in cryptocurrency history, and it’s coming soon.

As we get to the end of Ethereum under the PoW consensus mechanism, let’s talk about 10 important features of the merged PoS Ethereum.

One: After the merger, the fees of the Ethereum L1 mainnet will not drop

The purpose of the merger is to abolish Ethereum’s PoW consensus mechanism and replace it with PoS.

Fees are a function of block space requirements and are not affected by consensus mechanisms.

To keep fees low, use L2 (already live) to perform operations.

The second: in the 6-12 month window after the merger, there will be no structural selling pressure

Mortgage ETH and block rewards issued to validators cannot be withdrawn until the withdrawal function is enabled.

However, the tip portion and MEV in the gas fee can be withdrawn (the basefee will be burned).

Third, the post-merger inflation rate will drop from 4.3% to 0.22%.
We assume that the annual gas fee is 500,000 ETH, and the daily additional ETH issuance after the merger will drop from 14,250 ETH/day to 736 ETH/day.

That means 95% less issuance – yes, 95% less ETH that can be sold per day.

Ethereum : Top 10 Features of the Post-PoS Era

Fourth: The Ethereum network under PoS will have better security than PoW

That is: the cost of attacking a PoS chain is higher.

This has been debated beyond recognition – but attacking the Ethereum network under PoS is mathematically more costly than under PoW.

This is best described in “Why Proof of Stake” by @VitalikButerin.

Fifth: ETH is usually deflationary

ETH deflation most of the time due to EIP-1559 fee burn.

A picture is worth a thousand words, and the additional issuance plan is shown in the figure below.

Ethereum : Top 10 Features of the Post-PoS Era

In short, even if the total pledged amount reaches 100 million ETH, and the network does not generate any gas fees, the annual inflation rate of ETH is only 1.51%.

Sixth: Mining revenue increased by 50% (conservative estimate)

The current ETH pledge yield is 4.2%.

After the merger, the staking yield will jump to more than 6% due to the inclusion of transaction fees and MEV yields to validators.

Ethereum : Top 10 Features of the Post-PoS Era

Seventh: The merged ETH will have the properties of store of value and collateral

After the merger, ETH will have the same store of value properties as BTC, while being able to become the original collateral.
BTC has cemented its claim as “digital gold” and ETH will be both: “digital bonds” (collateral yield = risk-free rate) and the primary collateral asset for DeFi.

Ethereum : Top 10 Features of the Post-PoS Era

Eighth: Ethereum will be more sustainable than Bitcoin

After the merger, the Ethereum blockchain will be more sustainable than the Bitcoin blockchain.
In addition to PoS being more energy efficient than PoW (99% less electricity usage), the overall cost of the Ethereum network is also lower.
@ryanberckmans explained this clearly.

Nine: ETH expansion is coming!

The merger swapped Ethereum’s consensus engine for PoS for improved security.

The secure Ethereum mainnet L1 benefits from L2 rollups – the magic of scaling happens here.

Scaling technologies are developing rapidly: Polygon, Arbitrum, Optimism, StarkWare, zkSync, and more.

Ethereum : Top 10 Features of the Post-PoS Era

Tenth: After the merger, the journey of Ethereum will not end.
Although the Ethereum L1 will be largely fixed after the merger, the technology will continue to develop.

Data sharding, lightweight clients, quota withdrawals, state management, and more technical features will come.

Ethereum : Top 10 Features of the Post-PoS Era

Finally, the important thing to say again: the Ethereum merger is one of the most impressive engineering feats in blockchain history.

Under a full PoS mechanism, the Ethereum network will have an economic structure that improves security, scales through L2, develops its DeFi and NFT platforms, and surpasses BTC.


Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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