Ethereum London hard fork FAQs
Everything you need to know about Ethereum's London hard fork and EIP-1559!
In this Article:
- What you need to know about the London hard fork
- What you need to know about EIP-1559
- Will sending and receiving on the Ethereum blockchain be affected in Exodus?
- Will the London hard fork create another token?
What you need to know about the London hard fork
The London hard fork will take place at block 12,965,000, which is expected to occur on August 4, 2021. It consists of five Ethereum Improvement Proposals (EIPs), all of which pave the way for Ethereum’s transition in the future from proof-of-work to proof-of-stake.
One EIP of note is EIP-3554, which delays a substantial increase in difficulty for Ethereum miners, known as the “Difficulty Bomb,” until December 2021.
The most important EIP, however, and the most controversial, is EIP-1559.
What you need to know about EIP-1559
EIP-1559 changes how transaction fees work on the Ethereum blockchain in two ways.
First, it adds a base fee to every transaction that takes place on the Ethereum blockchain, including all Ethereum and ERC20 transactions. It is expected that this base fee will lower overall costs to the user, because it will improve estimating the amount of gas needed to send a transaction.
Second, after EIP-1559, transaction fees will no longer go to miners, but to the Ethereum network itself.
Currently, Ethereum users pay a gas fee to miners in order for their transaction to be confirmed (i.e. included in a block). After EIP-1559, the gas fee will be sent to the network, and then burned, or taken out of circulation.
These base fees are set using an algorithm, in the hopes that it will make it easier for users to pay a fair price. There will be an additional option to pay a tip to the miners in order to prioritize a transaction and make it confirm faster.
Burning base fees could also result in decreasing the circulating supply of Ethereum, which may make Ethereum a deflationary, rather than an inflationary, currency.
Will sending and receiving on the Ethereum blockchain be affected in Exodus?
No! Sending and receiving will not be affected. The hard fork will take place behind the scenes, and it will not affect your funds. In Exodus, you won’t notice anything at all-- unless you happen to mine Ethereum.
However, please be aware that centralized exchanges may disable ETH and ERC20 token deposits and withdrawals around the time of the hard fork. If this happens, exchanging Ethereum and ERC20 tokens in Exodus will be temporarily unavailable as well.
Will the London hard fork create another token?
No! Often hard forks will lead to the creation of another token (such as the fork that created Ethereum Classic in 2016). However, in this case, you can think of it more as a network upgrade. Ethereum protocols will change, but it will still be the one and only Ethereum!