In less than 5 days, we will see the launch of the London Fork on Ethereum’s main network. This fork includes the 3529 improvement plan, which makes major changes to the fee mechanism. Another important point about this update is that some tokens are not used and their value may decrease.
to the Report Decrypt will lose some of the fee tokens, such as GST2 and CHI, that were used to reduce transaction fees on the Ethereum network.
It is worth noting that the London Hard Fork includes five plans to improve the Ethereum. One of these plans is Plan 3529, under which fee tokens will lose enough initiative to reduce fees.
Tim Beiko, one of the main developers of the Ethereum Foundation, said in a recent interview:
Some Ethereums currently use it as data storage space. Now if you delete this data from the network, you will receive some payment as a reward. This is an incentive for users to vacate their occupied space.
In fact, there are some smart contracts on the Ethereum network that are used to execute automated commands, such as converting tokens and purchasing proxy tokens; Now if these contracts are unused, you can delete them from the network. In this case, you will get back part of the amount you paid as a commission.
Pointing to the benefits of this feature on paper, Bico said that some developers are using it for profit. According to Biko, developers fill the network with unused data when commissions are low, and destroy the data to get a portion of the commissions when commissions are high.
Fee tokens, or so-called token tokens, use the same method. Users also use them to greatly reduce their fees.
GST2 is one of the fee tokens that is expected to lose its function. The token traded in the $ 600 range before the announcement of the 3529 improvement plan in London Update and has now dropped to the $ 200 mark.
Despite the fact that fee tokens are no longer used after the London update, it is likely that we will see traders continue to operate in their markets.
“Since irrational developments in the digital currency market are not a new issue, we may see the value of these tokens go to zero or not,” Bico said.