Ethereum’s (ETH) long-awaited and highly-anticipated merge has been activated.
The massive update switches the second-largest cryptocurrency by market cap from a proof-of-work consensus model to proof-of-stake.
The change allows Ethereum holders to stake their coins in return for rewards, and transforms the network into a far more energy-efficient model for processing and verifying transactions. Ethereum’s overall energy use is expected to plummet by about 99.9%.
The switch to proof-of-stake is also set to have a dramatic impact on Ethereum’s rate of inflation.
The Ethereum Foundation says the number of new ETH entering the market will witness a major drop.
About 13,000 ETH were issued per day before the merge – a number that will now drop to about 1,600 ETH per day.
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