Ethereum’s London hard fork is expected to arrive on Thursday, initiating EIP-1559

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According to the countdown available on Ethereum.org, the London upgrade from Ethereum is due to be activated on Thursday. “The London upgrade should go live on Ethereum in Block 12,965,000 in August 2021,” it says on Ethereum.org. “It will introduce EIP-1559, which will reform the transaction fee market, along with changes to the way gas refunds are handled and the Ice Age schedule.”

Ethereum Improvement Proposal 1559 or EIP-1559 will have a direct impact on how the network handles transaction fees. Going forward, each transaction will burn a base fee, reducing the circulating supply of the asset and allowing users to add a tip to incentivize faster confirmations relative to network demand. The London fork will also introduce other EIPs like EIP-3541 in mid-July, according to a blog post by the Ethereum Foundation.

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Twitter user korpi pointed out some notable points regarding EIP-1559 in a tweet thread on Monday.

“What everyone is excited about is $ ETH Burn,” Korpi said in the tweet thread after discussing a number of other points about the Ethereum upgrade. Korpi added:

“According to EIP-1559, part of the transaction fee is burned and withdrawn from circulation. But that doesn’t mean ETH will immediately become a deflationary asset. For this to happen, the ETH burned must be higher than the ETH spent in block rewards.

Ethereum’s London hard fork is part of its Ethereum 2.0 journey – which will ultimately change the network’s consensus algorithm from proof-of-work or PoW to proof-of-stake or PoS.