The Merge will be the biggest halving until the date

Every 4 years all people go nuts with Bitcoin halving because historically, a bullrun happens after it, but I don’t see anybody so excited for the halving aspect from the Ethereum Merge, which IMO will have even more impact, so I’ll explain it.

# Rewards

Right now, Bitcoin gives 6.25 btc each 10 minutes to miners, that’s ~38M$ each day.

Ethereum gives 2 eth to miners each 13 seconds, that’s also ~38M$ daily, so miner rewards from both networks are almost the same.

# The Merge

The Merge will change the rewards, those 2 eth per block are removed, and 1370 eth are given to validators daily. That’s 4M$, that’s right, almost 10 times less from the initial 38M$ figure.

To put this into perspective, a Bitcoin halving right now, would reduce rewards from 38M$ daily, to 19M$ daily, while the ethereum’s merge halving will reduce rewards from 38M$ daily to 4M$ daily

The Merge is also planned to happen this summer, and if you’re following the merge development, you know that this will probably happen on time, as the teams are deploying the hopefully final testnet 5 months before the deadline.

So in conclusion, after the Merge we will see the biggest halving until now in all crypto space (it doesn’t make sense to call it halving, as it’s not the half, more like the Tenthing or idk, english is not my first language). Where’s the hype?

Edit: Some of the comments called this *The decimation*

Edit2: apparently someone pointed that decimation it’s used to say that just the 10% of the amount it’s removed, so I guess it’s the opposite, someone knows how’s called when you kill the 90% of the amount?

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27 thoughts on “The Merge will be the biggest halving until the date”

  1. It’s commonly referred to as the “triple halvening”.

    The merge Kiln testnet is going live very shortly, which will likely be the final before Bellatrix hard fork in June/July.

    [http://eth2.news](http://eth2.news)

    The planning focus is now firmly on Shanghai, the next milestone after the switch to Proof of Stake.

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  2. Not only that, but all the fees that aren’t burned will go to validators, so holders will have an incentive to stake. More ETH staked = less ETH in circulation = price goes up.

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  3. This is going to fundamentally affect the amount of Eth held on exchanges. Eth miners will immediately stop receiving rewards after the merge and therefore stop selling Eth to recoup mining costs.

    Eth on exchanges has already been going [consistently down](https://cryptoquant.com/asset/eth/chart/exchange-flows/exchange-reserve?exchange=all_exchange&window=DAY&sma=0&ema=0&priceScale=linear&metricScale=linear&chartStyle=line) for the last 18 months. With a supply shock, it’s going to become harder and harder to get Eth.

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  4. “If you’re following the merge development, you know that this will happen on time”

    Counter point: if you are following ethereum development, nothing is ever on time lol.

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  5. Maybe this is stupid but 96% of my cold storage portfolio is BTC lol… and I don’t have much on exchange either

    I thought getting 0.1 BTC is more important to the average person than 1 ETH, there’s just so much more ETH to go around. It might not work out that way short term though and the flippening may happen :/

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  6. Thanks OP for the informative content. I was not aware that there will be a such decrease in the issuance of ETH.

    This should indeed skyrocket the price due to lower supply than usual. I think I will increase my ETH purchases.

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  7. 2 more caveats to add to this.

    EIP1559 which will burn ETH (after the Merge will need a gwei cost of over 10 in order to be deflationary) (Deflationary here means there is more than 4M$ daily burned.

    Second thing is that none of these 4M$ rewards will be available when the merge takes place. The developers will need to enable getting rewards off during the Shanghai HF. What does that mean? Essentially for 6 months there will be 0M$ going to market.

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  8. I think we are all waiting patiently for this. The hype will set in when they actually set a date and not just a continuously delayed timeline.

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