Mark Cuban, the billionaire owner of the professional basketball team Dallas Mavericks, has recently stated that he’s very bullish on the much-anticipated Ethereum merge.
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In a recent interview with Fortune, Cuban pointed out that The Merge is crucial for two key reasons. He said his first key reason is the importance and benefits of transitioning to a proof of stake (PoS) consensus algorithm.
According to the report, Cuban’s second key reason is that he’s interested in less Ethereum (ETH) issuance after the merge, which he said will possibly make the asset deflationary.
This implies that Cuban expects the supply of Ethereum (ETH) to notably decline after the merge because fewer coins are expected to be issued.
The owner of Dallas Mavericks also confirmed that he has no money staked in the Beacon Chain, but he certainly has investments in Ethereum (ETH) and Ethereum-based non-fungible tokens (NFTs). He has also invested in many companies building on top of the Ethereum blockchain.
What Happens To Ethereum Miners When The Merge Launches?
Many are aware that Ethereum is currently powered by a consensus algorithm known as proof-of-work (PoW), which needs miners to complete complex puzzles in order to validate transactions. The fact that the process requires a vast amount of computer power, is currently being criticized due to its impact on the environment.
However, with the planned upgrade to PoS, the services of miners will not be needed anymore. The upcoming transition will enable qualified users to validate transactions based on the number of coins they stake. This implies that the more the number of ETH staked by a validator, the higher the likelihood of being chosen to validate transactions on the Ethereum network and earn rewards.
At the moment, Ethereum is running in parallel on both PoW and PoS chains. Howbeit, validators on the PoS chain cannot function until the much-anticipated event plays out when the Ethereum blockchain completely transitions to the Beacon Chain. This denotes that only the PoW chain currently processes transactions of users on the network.