Ethereum's London upgrade is set to activate on Thursday, according to the countdown available on Ethereum.org. "The London upgrade is scheduled to become alive on Ethereum in August 2022, on block 12,965,000," Ethereum.org reads. "It will innovate EIP-1559, which reforms the transaction fee market place, along with changes to how gas refunds are handled and the Water ice Age schedule."

Ethereum Improvement Proposal 1559, or EIP-1559, volition direct bear on how the network handles transaction fees. Going forward, each transaction will burn a base fee, thereby decreasing the nugget's circulating supply and giving users the choice of including a tip to aid incentivize speedier confirmations proportionate to network demand. The London fork will also introduce other EIPs, such equally EIP-3541, according to a weblog postal service from the Ethereum Foundation in mid-July.

Twitter user korpi pointed out a number of notable points regarding EIP-1559 in a tweet thread on Monday.

"What everyone is excited about is $ETH burn," korpi said in the tweet thread after discussing a number of other points regarding the Ethereum upgrade. Korpi added:

"Afterward EIP-1559, part of the transaction fee is burned and removed from circulation. But it doesn't mean that ETH immediately becomes a deflationary asset. For that to happen, ETH burned must be higher than ETH issued in block rewards."

Ethereum's London hard fork is part of its Ethereum 2.0 journey — which will ultimately change the network's consensus algorithm from proof-of-piece of work, or Pw, to proof-of-stake, or PoS.