Ethermine Helping Miners Mitigate EIP-1559 Revenue Loss with MEV Software
Ethermine has announced the launch of its Maximal Extracted Value (MEV) beta program. The mining pool claims MEV will enable its miners to make more profits and cushion the effect of the impending EIP-1559, which is designed to slash miner rewards, according to a tweet on March 17, 2021.
Ethermine Adds Support for MEV
Ethermine, an Austria-based mining pool that controls 20 percent of Ethereum’s hash power, has introduced the Maximal Extracted Value (MEV) beta program, a software strategy the firm claims will allow its miners to cushion the effect of the upcoming EIP-1559.
For the uninitiated, the Ethereum Improvement Proposal (EIP-1559) was introduced by Vitalik Buterin to help manage Ethereum’s skyrocketing gas fees. The proposal will make transaction fees more stable by replacing the network’s price-auction fee structure with a base-fee system, where users will no longer need to pay huge fees to get their transactions confirmed as quickly as possible.
While the proposed implementation of EIP-1559, which is slated for July this year, alongside the London hard fork, will greatly benefit Ethereum investors and dApp developers on the network, the same cannot be said of miners and they have been kicking against the EIP.
Ethermine’s MEV Strategy
According to Ethermine’s announcement, the firm plans to distribute 80 percent of its MEV revenue to miners and it expects that to amount to about 1-10 percent increase in miner rewards.
It’s worth noting that even after a successful implementation of EIP-1559, miners will not begin to feel the adverse effects immediately, thanks to the recently proposed EIP-3368, which aims to automatically increase miner rewards to 3 ETH per block and gradually let EIP-1559 reduce it over a period of two years until it finally gets to 1 ETH per block.
What’s more, Ethermine has pledged to promote the good of the entire Ethereum ecosystem and refrain from participating in any form of hostility against the network, irrespective of the final outcome of both EIPs.
“We opposed EIP-1559because of security concerns. These concerns could get mitigated by adopting EIP-3368. Independnendent of the outcome of EIP-1559 and EIP-3368, we’ll never endorse nor participate in any kind of hostilities by miners against the network,” the firm declared.
At press time, the price of ether (ETH) is up by 3.07 percent in the 24-hour timeframe, trading at $1,818, with a market cap of $209.33 billion, as seen on CoinMarketCap.