Thread by @Momentum_6

In the most significant #blockchain upgrade in history, the #Ethereum network is moving from a #proofofwork (#PoW) to a #proofofstake (#PoS) consensus mechanism to confirm transaction blocks, known as “The Merge”

Read more and debunk myths: bit.ly/3uQ4RZg

1/ The two major upgrades, PoS #consensus and #sharding, promise to deliver fast transaction times with low network costs without sacrificing scalability, security, or decentralization. #TheMerge is Phase 0 of the rollout of the Ethereum 2.0 improvements this year.

2/ ‘The Merge’ will replace PoW and the temporary split solution with the more energy-efficient PoS consensus layer, the Beacon Chain. Transaction blocks will no longer be confirmed by solving computationally intensive puzzles.

3/ The primary purpose of The Merge is to upgrade the consensus mechanism with the significantly more energy-efficient PoS consensus mechanism and deliver the 3S (sustainable, secure, and scalable)

4/ So let’s bust a few myths circulating:
❌ The merge will lower gas fees -> future sharding upgrade will lower fees
❌ Stakers require 32 $ETH to participate in the new PoS protocol -> validator pools will exist
❌ A new ETH2 token will be minted -> the same token will be used

5/ ‘The Triple Halvening’ — Towards a Deflationary Currency:
An immediate $ETH issuance reduction of about 90% from the current annual issue of about 4.3% to 0.03–0.04%, of the total $ETH supply is expected — halving at about 3 times the #Bitcoin rate of every 4 years.

6/ The core Ethereum #developer community behind the Kiln Testnet Merge says the migration to mainnet is on target for June, given any unknown unknowns.