Anticipating the Ethereum Merge Next Week, What's the Fate of the Burn Mechanism?

To compete with major networks like Cardano, Avalanche and Solana, a merge will be a new value for Ethereum, so it's something that supporters are looking forward to.

After the merge, supporters and observers also expect the impact to have a positive impact on the NFT and DeFi sectors, because the majority of projects in these two major sectors are built on the Ethereum network.Merge Ethereum and Burn Mechanism

Based on the CryptoSlate report, the Ethereum merge will occur on Thursday next week (15/9/2022), at four in the morning.

The merger will occur at the terminal's total difficulty level of 58,750,000,000T, while currently the newest block difficulty is at 12,345T.Regarding the validator offline, Gnosis co-founder Martin Koppelmann said that it was back online and normal after the downturn in Bellatrix.

“The missed blocking rate from the Bellatrix update is about 9% which is higher than the usual rate of 0.5%. Many communities take this as a signal to question the network's readiness to merge,” said Koppelmann.According to data from Ultrasound, the current total supply of Ether (ETH) is around 120 million coins, and currently staked on Beacon Chain is more than 10 percent of the total supply, at 13.6 million coins.

Ultrasound also saw that later, if there were around 14 million coins staked on the PoS network, it would generate around 1700 ETH every day. This amount will increase as the number of coins staked increases.Of course, the burn mechanism will still work after the merge to fulfill its function, namely reducing the circulating supply to make ETH a deflationary coin.

However, amid the positive crowd ahead of the merge, one of the leading traders on TradingView, “Tradersweekly,” saw the potential for a pump and dump scheme in Ether coins.He saw it would be triggered by the distribution of old coins from the proof of work consensus, which was made ahead of the merge. That means, the price of ETH is likely to rise but only temporarily.

From a global point of view, of course, sentiments such as the US central bank's policies remain the main ones for investors.Thus, the impact of any update in the crypto industry is likely to be long term, not short term.