billion locked up in decentralized finance, we have enormous demand for
the Ether token,” said ConsenSys founder Joe Lubin.
ConsenSys founder and Ethereum (ETH)
co-founder Joseph Lubin has implied that Ethereum is transitioning to
“ultrasound money” status ahead of the London hard fork slated to
activate around 12:30 pm UTC Aug. 5.
During an interview with Bloomberg TV, Lubin was questioned
on the imminent EIP-1559 upgrade, which will see Ethereum transition
away from a bidding-based fee market to a fixed price and burn
mechanism.
Lubin stated that the London hard fork is part of a
broader global movement in which the first step is the “democratization
of the Earth,” and the second step is the democratization of the
decentralized finance (DeFi) system and the introduction of ultrasound
money:
“The second step that's in full play right now is
the democratization of the global decentralized finance system. And
this step is the introduction of something that people are calling
ultrasound money.”
The term ultrasound money has been a long-running meme held in Ethereum based communities that mocks Bitcoiners who describe BTC as “sound money” due to its capped supply of 21 million.
The
meme refers to the EIP-1559 proposal’s burn mechanism that could result
in Ethereum’s supply becoming deflationary after more Ether is destroyed than created. Each transaction will burn a base fee,
resulting in a decreasing supply of the asset from now on. Some believe
that it will give ETH a stronger value proposition than Bitcoin (BTC) as “ultrasound money.
“So
we're a fixed amount of gold on the planet. And the fixed supply of
Bitcoin represents sound money to certain people. With $13 billion worth
of Ether locked up in Ethereum 2.0 and $70 billion locked up in
decentralized finance, we have enormous demand for the Ether token,”
Lubin said.
“And now we're burning the Ether token with the introduction of the London hard fork,” he added.
Related: DeFi attracts 2.91M Ethereum addresses, according to ConsenSys
ETH seems unlikely to become deflationary soon after the London hard fork, and the upgrade doesn’t ensure this
by default. Twitter user “korpi” highlighted on Aug. 2 that this
“doesn't mean that ETH immediately becomes a deflationary asset. For
that to happen, ETH burned must be higher than ETH issued in block
rewards.” This is more likely after the move to proof-of-stake.
Bitcoin maxi Peter McCormack appeared unhappy with Lubin’s interview and discussions of ultrasound money, noting on Twitter that:
“Ultra-sound
money is a disingenuous use of language. It implies that Ethereum is
better money than Bitcoin. While directionally centralizing and
operating with a flexible monetary policy.”
User “bobMull12314085” found the funny side however, stating that “you maxi’s are so sensitive.”
The London hard fork is a major milestone in the journey to Ethereum
2.0, which will change the network's consensus algorithm from
proof-of-work (PoW) to proof-of-stake or PoS.
source link : https://cointelegraph.com/news/ethereum-is-becoming-ultrasound-money-consensys-founder-says
