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Ethereum (ETH) Post-Merge Economics Analyzed by Expert

Sat, 09/03/2022 - 15:28
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Vladislav Sopov
Ethereum (ETH) has all chances to become most "sound" form of money and store of value, investor Justin Bons says
Ethereum (ETH) Post-Merge Economics Analyzed by Expert
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Justin Bons, founder and chief investment officer of a veteran European blockchain-centric investment fund Cyber Capital, shares his optimistic forecast for the effect the Merge activation will have on Ethereum's technology, tokenomics health and massive adoption.

Merge activation in Ethereum (ETH) gives its tokenomics unmatched boost

Mr. Bons has taken to Twitter to share that the upcoming hotly anticipated Merge upgrade — Ethereum's migration from a proof-of-work (PoW) network consensus to a proof-of-stake (PoS) one — will be of particular importance for its tokenomical structure.

According to him, after the Merge activation, Ethereum (ETH) is set to be a deflationary cryptocurrency with negative inflation. As this metric is based on network's usage activity, this will advance ETH's value proposition.

As Ethereum (ETH) remains by far the most popular smart contract platform in Web3, this is the first time that an upgrade of such scale is activated in the mainstream blockchain:

This is why ETH finally implementing this upgrade is so exciting. As no other cryptocurrencies have anywhere near the usage of ETH. This is the first time we will see this design in practice under load

Given its economical effect, Ethereum (ETH) Merge activation is equal to three Bitcoin (BTC) periodical emission reductions, analyst says.

Censorship resistance, eco-friendliness, cyber resilience and democracy: What else changes with Merge?

Besides advanced tokenomics, the Merge upgrade will make the second blockchain more attack-resistant since the cost of a hypothetical attack becomes absurdly high.

The proof-of-stake consensus does not require its participants to employ high-end hash mining gear: post-Merge transactions can be validated even with Raspberry Pi compact computers.

Ethereum Devs Confirm Previously Announced Merge Date

As covered by U.Today, the Merge will be activated in Ethereum (ETH) mainnet Sept. 15, 2022. The upgrade will put an end to Ethereum (ETH) mining and replace it by staking.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (, Monoreto, Attic Lab etc.)