{"id":1640659,"date":"2022-08-26T18:05:47","date_gmt":"2022-08-26T22:05:47","guid":{"rendered":"https:\/\/wordpress-1016567-4521551.cloudwaysapps.com\/?post_type=station&p=1640659"},"modified":"2022-08-26T23:55:07","modified_gmt":"2022-08-27T03:55:07","slug":"ceo-of-4700000000-crypto-asset-manager-says-upcoming-ethereum-upgrade-an-exciting-prospect-heres-why","status":"publish","type":"station","link":"https:\/\/platodata.io\/plato-data\/ceo-of-4700000000-crypto-asset-manager-says-upcoming-ethereum-upgrade-an-exciting-prospect-heres-why\/","title":{"rendered":"CEO of $4,700,000,000 Crypto Asset Manager Says Upcoming Ethereum Upgrade an \u2018Exciting Prospect\u2019 \u2013 Here\u2019s Why"},"content":{"rendered":"

Pantera Capital CEO Dan Morehead is highlighting the benefits of Ethereum (ETH<\/a>) transitioning to a proof-of-stake (PoS) consensus mechanism.<\/p>\n

In Pantera\u2019s latest Blockchain Letter, the crypto-focused hedge fund\u2019s top executive explains<\/a> that one consequence of the network\u2019s upcoming Merge will be the elimination miner rewards and thus a reduction in the daily issuance of new ETH from 14,600 to 1,600 tokens.<\/p>\n

According to Morehead, this would shift the leading smart contract platform toward being a deflationary asset.<\/p>\n

\u201cAfter \u2018The Merge,\u2019 Ethereum\u2019s issuance rate of 1,600 ETH\/day in staking rewards minus the fees burned nets out to zero. Subtracting penalties incurred by validators (e.g. getting slashed for misbehaving) and ETH that is lost over time, this would make Ethereum issuance net negative.<\/em><\/p>\n

In the context of today\u2019s inflationary environment, Ethereum\u2019s shift towards a potentially deflationary asset is an exciting prospect.\u201d<\/em><\/p>\n

The newsletter goes on to discuss how the switch away from proof-of-work (PoW) will make the project more eco-friendly.<\/p>\n

\u201cMoving to proof-of-stake will have a major impact on Ethereum\u2019s sustainability with an estimated reduction in energy consumption by 99.95% \u2013 obviously a big improvement from an environmental, social, and governance (ESG) perspective.<\/em><\/p>\n

The 99.95% energy reduction will come from Ethereum\u2019s transition away from proof-of-work \u2013 a process that uses electricity and hardware as the main costs to secure the network.<\/em><\/p>\n

In a proof-of-stake system, the main cost to secure the network is capital in the form of staked tokens, and it does not require much electricity at all.\u201d<\/em><\/p>\n

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Source: Pantera Capital<\/a><\/figcaption><\/figure>\n

Just this week, the Ethereum Foundation provided<\/a> a detailed update about the Merge\u2019s timetable. The process will be initiated in several phases, starting with the Bellatrix upgrade on September 6th followed by the formal transition sometime between September 10th and 20th.<\/p>\n

The Merge aims to address the network\u2019s scalability issues by setting the stage for future upgrades, including sharding.<\/p>\n

Ethereum has been feeding off a slight mid-week rally after tumbling from above $1,850 over the weekend. ETH is up 8.3% over the past 48 hours and trading for $1,701.<\/p>\n

Pantera Capital currently participates<\/a> in 100 venture investments and has $4.7 billion in assets under management.<\/p>\n

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