Ethereum Foundation clarifies the Merge upgrade won’t reduce gas fees

 Ethereum’s energy consumption will go down by 99.5% after the upgrade.

Setting aside the rumors and misconceptions about the upcoming Merge upgrade, Ethereum Foundation wrote in a blog post that the Merge wouldn’t cause a reduction in the gas fees. As per the post, ‘Gas fees are a product of network demand relative to the network’s capacity.’

The Foundation clarified that the Merge would cause Ethereum to transition from the energy-intensive Proof-of-Work to the more-efficient Proof-of-Stake. This would cause Ethereum to become more eco-friendly, but it would have no direct significant impact on the network capacity or throughput. Many investors, however, purchased ETH thinking otherwise ahead of the upgrade. Ethereum was trading at $1,844, down by 2.6% in the last 24 hours.

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