Ethereum miners will have their own PoW Ethereum without burning mechanism and “governance”
According to a recent statement made by EthereumPow’s official account on Twitter, the forked PoW version of the coin will not inherit the coin burn mechanism that currently burns the Base Fee paid per transaction by users.
The statement was made in a thread that described the manifesto of the new version of Ethereum. Miners agreed on the fact that there is no justification for punishing one group of network participants in favor of another.
3. Abolition of EIP-1559. In a truly open and inclusive system/society, there is no justification for punishing one group of participants in favor of another.
— EthereumPoW (ETHW) Official (@EthereumPoW) August 10, 2022
After the Merge update, EthereumPow is going to distinguish it from the PoS chain and will aim at becoming completely autonomous and self-sustained, devoid of any governance entity. The goal is set to be achieved in the next three years.
Why don’t PoW enthusiasts want EIP1559?
The main reason, despite all the talk about decentralization, is the limitations that the update put on miners’ profit making, as the base fee that users pay for transactions went to the burn address and was removed from circulation.
With the help of the burning mechanism, Ethereum got a separate source of support on the market as constant burning events allow traders to avoid some selling pressure that previously appeared on the market.
The update also decreased the governance power of miners that could previously dictate the path that Ethereum was taking, as they were the main source of block moving power on the network.
At press time, Ethereum is trading at $1,713 and moving above the local resistance level on the chart, with its value going up continuously after the announcement of the Merge update that would take place in September and make Ethereum unavailable for mining.