Merge will be the transition from the Ethereum Proof of Work (PoW) network to Proof of Stake (PoS) and its most significant improvement to date, and so I am excited about it.
- Less supply.
- Number flows and DCF.
- Eco-friendly.
- No price.
Less supply
The price of any asset is formed by its supply and demand, and less offer, keeping everything the rest equal, the average price increases. And since the merger is done, the supply of ether ($eth) will be substantially reduced due to two main factors.1) Less emission and sale of miners pressure:In PoS, electronic emission will be reduced by 90% of current levels. And although this only represents a significant decrease in supply, it is not just that. Moreover, given the nature of the PoS consensus mechanism, the selling pressure of miners will be considerably lower as well. While currently in PoW, it publishes eth goes to miners who operate extremely expensive business and are required to sell some of these ethers to cover their expenses; in PoS emitiu eth goes to validators who will only have to incur at a minimum cost of hardware and electricity.
2) Incentives and closed ethno:Currently there are about 14.02M stakes, earning 4.1% APR. This so-called performance comes only from the rewards of the outlet right now. Once the update starts working however, players will also receive the recipes of unburned fares, which now goes to the miners, which is expected to increase the take APR 2X. This APR is regarded as an almost risk-free performance in $eth. When you rise, since you become an attractive alternative to other opportunities to win in DeFi, it is likely to result in more of the stake. And more bet means less offer on the market, or even higher purchasing pressure. Moreover, it is worth noting that although many people seem to believe that The Merge will allow retirement and suddenly the >13M ETH will unlock and flood the market, this is far from a truth. Currently taking eth is a one-way ticket where players cannot withdraw their eth, nor rewards, at least 6 months after The Merge. And when the retreats are finally enabled, only 30k ETH can be withdrawn per day. There will be no major unlocking to flood the market.
Therefore, if the markets still see some value in the future of this experience that the crypto is, and the demand for ethno remains, the equation is simple. But that would still be falling short with me. In PoS, the Ethereum network will provide cash flows and become eco-amigable, which I think will make eth more inversionable for institutional money.
Number Chains and CCF
The DCF is probably the most common model that traditional institutions have used to decide whether to invest in something or not in the last 50 years, and is now applicable to eth. Currently, there is only an indirect distribution of benefits to etth holders in the form of "compyback". Transaction rates that are burned (since the EIP-1559 update) reduce the supply of eth and therefore transfer a portion of the net income to etth holders. However, in PoS, players will receive the unburned portion of transaction fees that will be a direct distribution of network profits Ethereum to etth stagnars, as a dividend. And based on these, and an expected growth rate of Ethereum network revenues, it is possible to build a DCF model that will allow the institutional investor to better analyze eth as investment.Eth will become ecological
Concerns about climate change are widespread and energy intensive PoW receives a lot of hatred. And if this criticism is justified or is not now irrelevant, since the transition to PoS will decline the energy use of the Ethereum network by 99.98%. This, I think, will give a better picture and make it a viable investment for the most aware institutions of climate change.Not yet fully priced
Lastly, while the big events like this tend to be hypocritical and end up selling the news action; given the current environment, I don't think Merge is totally expensive. Although we already have a delivery date - it was announced that it is between 15th 16th from September, because the progress was slow and the macro-outlook has been all less optimistic for the crypto during the first half of the year, I think the market remains skeptical and waiting to see news before buying.Continue reading on this topic: ■a href="https://storage. googleapis.com/finguru_static/icax5s_f24906ef0f/icax5s_f24906ef0f. html Secundarios Del Merge: ETHPOW
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