The Merge is still projected to reduce the network’s energy consumption by 99.5%. According to a recent clarification released by the Ethereum Foundation, the upcoming proof-of-stake transitory upgrade — called the “Merge,” — will not impact gas fees. Gas fees are calculated based on network demand relative to available capacity.
By transitioning from proof-of-work to proof-of-stake for consensus, the Merge will reduce energy requirements while maintaining network capacity and throughput. The proposed joining of the Ethereum mainnet’s existing execution layer with its new Beacon Chain proof-of-stake Layer would make mining obsolete, improving efficiency.
It is anticipated to be released in the third or final quarter of 2022. Many investors and traders have purchased either in anticipation of the Merge upgrade, despite concerns that the network’s capacity would increase once it went live.
Anyone may sync their own self-confirmed copy of Ethereum or operate a node, with no initial Ether staking requirements. It is not possible to retrieve staked Ether until the next Shanghai upgrade is implemented. However, fee tips will be accessible in liquid ETH immediately. After the Merge, withdrawals will be rate-limited to avoid a liquidity crisis. Transactions will not be any faster after the Merge.
However, following the merger, post-Merge APR returns on the network are projected to jump by 50% in order to entice money. Client developers are working as hard as possible to complete the Merge by September 19th. This merge is designed so that there will be no downtime during the transition.