Ethereum’s London Hard Fork Could Make Some Tokens Worthless

Ethereum’s London hard fork could make some of the tokens worthless as the EIP-3529 upgrade contains a code upgrade too that does away with gas refunds so let’s read more in our latest Ethereum news today.

This will make the gas tokens functionless due to Ethereum’s London hard fork. The upgrade is scheduled for August 5 and much of the talk has been around EIP-1559 which is a contentious code change that burns transaction fees and takes some of the ETH out of circulation but these won’t be the only tokens that the upgrade will deem worthless. Gas tokens like GST2 and CHI used by developers to secure lower prices when deploying smart contracts can become obsolete.

amidst the coordination for EIP-1559, I admit we have neglected comms on EIP-3529: Reduction in refunds,

PSA: these tokens will be w/out functions in <1wk, divest accordingly

fortunately i think the majority of holders were more sophisticated market makers, users eg. @1inch https://t.co/2SGFz2llm4

— trent.eth (@trent_vanepps) July 30, 2021

London comprises five seaprate Ethereum Improvement Proposals and changes the network that has been submitted, discussed by other developers and stakeholders that are integrated into the code, and one of them is EIP-3529. As Tim Beiko who is a core developer with the Ethereum foundation explained:

 “How Ethereum works today is if you store data on Ethereum…when you remove that data from the network, you get a small gas refund back to kind of incentivize people to clean up after themselves.”

There are smart contracts codes that automate transactions for the things like NFT purchases and asset swaps which are no longer needed after a certain point which are kind of how the aluminum can no longer be used after the soda has been drunk. According to Beiko, while the idea of the refunds was good in theory, and it was more commonly used by developers to take advantage of the low gas fees on the network which corresponds to times where the network is used less to fill it with junk data. They had their funds when the gas fees returned to their higher levels.

Gas tokens that facilitate this process are working as a mechanism of banking storage at low prices and released at high prices according to the gasToken project. By using these tokens you can pay less and deploy smart contracts. Gas Token Two is one of the tokens that can become obsolete and it is trading for over $200 on Bilaxy crypto marketplaces. Before the EIP-3529 was even added to London, it was above $600. while the tokens have no actual utility after next week, the useless token in crypto can maintain active markets. Yearn.finance for example is a Defi protocol that issued a valueless supply token with 0 financial value but now sells for over $31,000.