Vitalik Buterin, Ethereum’s co-founder, has hinted The much-anticipated merger could take place around September 15.
The merge, which is a transition from a Proof-of-Work (PoW), consensus mechanism to a Proof-of-Stake (PoS), consensus mechanism, is thought to be the largest software upgrade in Ethereum. However, it’s been difficult to find since its launch in December 2020.
Despite these revelations made by Buterin, ETH developers are expected to arrive at a definitive date next week. The last test called Goerli was completed earlier this week.
A recent developers’ call had Suggestion September 19 as the most likely date of the merger.
The PoS algorithm will allow blocks to be confirmed once the merge is complete. Validators will stake Ether and not solve a cryptographic puzzle, making it more economical and eco-friendly.
Citigroup (or Citigroup) is an American multinational investment bank. disclosed Ethereum could become deflationary if it were to be converted to a PoS consensus system.
As a result, the second-largest cryptocurrency would become a “yield-bearing asset.”
Citi also noted that the merge would cut the overall Ether issue by 4.2% annually, making the Ether market deflationary. Therefore, shifting to a PoS consensus mechanism would enhance Ethereum’s quest to become a store of value.
Therefore, as a “yield-bearing asset,” Citi added that ETH would experience more cash flows. This resulted in more valuation options that were not possible before.
On the other hand, Buterin recently acknowledged that MakerDAO’s consideration to depeg its native token DAI from stablecoin USD Coin (USDC) was a risky and terrible idea, Blockchain.News reported.
This could have been made based on tornado sanctions, as MakerDAO plans to replace USDC with Ethereum.