Ethereum (ETH) miners are in their last mining days as the largest smart contract platform is set to disable mining and onboard the staking approach. Accordingly, miners appear to be making the most of the moment as they recorded higher revenue in August 2022, when compared to the previous month (July 2022).
On-chain data reveals that Ethereum Miner Revenue for the month of August 2022 touched the $733.88 million mark. Whereas in July 2022, Ethereum miners made profits that only totaled $620.65 million.
Miners earn rewards by producing valid blocks as well as by processing transactions on the Ethereum blockchain and their rewards are usually paid in ETH.
It is worth noting that monthly total miner revenue puts into consideration block subsidy or inflation rewards, transaction (gas) fees as well as Uncle rewards.
Uncle block rewards on the Ethereum network are rewards awarded to miners for the creation of an uncle block included in a valid block added to the chain. It is similar to stale blocks on the Bitcoin (BTC) network.
Inflation rewards contributed the largest to the $733.88 million profits recorded by ETH miners in August 2022. While $678.69 came from inflation rewards, $29.67 was derived from Uncle rewards while revenue made by ETH miners from transaction fees reached $25.52.
So far, the highest revenue ($1.47 billion) made by Ethereum miners this year was spotted in January 2022. Since then, monthly revenue has been declining.
The Merge Will Cancel ETH Mining
While the upcoming Merge upgrade on the Ethereum blockchain is designed to make the biggest smart contract platform more scalable, less energy intensive, and complete; it will bring an end to miners’ financial activity.
Post-merge, mining will no longer be supported on the Ethereum blockchain. The Merge is an upgrade that will transition the popular blockchain to operate using the proof-of-stake (PoS) consensus algorithm mechanism.
Whereas proof-of-work supports token mining, proof-of-stake involves staking as the name implies.
In a bid to keep Ethereum mining alive, Chandler Guo, a popular cryptocurrency miner, and other miners announced their plan to execute a post-Merge Ethereum hardfork that will give rise to another platform dubbed Ethereum POW (ETHPoW).
In response to this plan, Vitalik Buterin, the creator of Ethereum noted that the planned miner-led hardfork will not succeed nor gain substantial adoption