Ethereum (ETH) community and cryptocurrency market, which foresees the transition from a proof-of-work (PoW) system planned to take place in September to a more environmentally friendly proof-of-stake (PoS) system. Merge eagerly awaiting its upgrade.
Addressing the Merge upgrade and its consequences, Citibank stated in a research report that the upgrade Ethereum He said there would be some consequences for him.
According to Citibank, these results will include lower energy density and a shift to a deflationary asset, he said.
In the report prepared by the bank, the transition from PoW to PoS ETH He said that its production will decrease by 4.2% per year and ETH will become more deflationary.
According to Citibank, with this upgrade, ETH will gain a more solid status as a store of value.
“The transition to PoS will transform ETH into a more efficient asset with cash flows, and in this context, Ethereum will be both a yielding and deflationary asset.
In addition, post-merge ETH can be seen as a relatively energy efficient and environmentally friendly crypto asset as its energy expenditure is expected to decrease by 99.95%.”
What is Merge?
Merge, one of five planned upgrades for the Ethereum blockchain, Ethereum It envisages the transition of the network from PoW to PoS system.
With this upgrade, it is aimed to both reduce transaction fees and increase transaction speed.