CoinMarketCap takes a deep dive into Ethereum Eagle (EGL), a project that offers a signaling technique to miners and the Ethereum ecosystem to find the correct balance between gas limits and block size to maximize value.
The Main Problem That Ethereum Eagle (EGL) Solves
Also, the majority of miners will have to aim for a specific gas limit over time in order to attain a new block size level. This solution worked perfectly for some time before turning into a huge problem that involved the claim that miners should act in their own financial interests and that their investment in mining equipment demonstrates a long-term commitment to the value of ETH.
Rather, miners work together to raise the gas limit whenever they choose. Over a certain period of time, miners do not vote independently on the ideal block size for Ethereum, rather they act like a mafia, deciding on the optimal size in secret and then voting it into reality which can be witnessed through a historical gas limit chart.
Solution That EGL Brings To The Table
EGL expands on Ethereum's experiment of shifting some variables from core developers to miners by returning part of that authority to not just core developers, but the whole community.
The core solution can be termed as EGLs being bootstrapped by utilizing the Balancer to spin the flywheel and discovering pools that may be rewarded with EGLs to take the ecosystem's preferences into account.
EGL Serves As The Perfect Bridge For EIP-1559
In a hypothetical scenario, if everyone believes that increasing the gas limit is absolutely safe, EIP-1559 eliminates the motivation for pools to do so. Producing larger blocks would simply raise their danger of uncle blocks, but not their profits, because fees are burnt, and this news isn't good for miners. In fact, it removes the incentive as a smaller block implies greater congestion, and miners pay larger “tips” when there is overcrowding.
EGL can be of immense help in this scenario. It can act as a transitory bridge to EIP-1559. EGL might allow pools to keep their expected income while benefiting users through improved monetary policy and price certainty due to its intention of rewarding pools significantly, perhaps in line with their projected fees. This is conceivable because the value created by EGL should be sufficient to compensate pools, removing the debate over whether the money generated by fees should be used to compensate pools or burnt.
Ethereum Eagle (EGL) Genesis - A Unique Feature
Investors can lock ETH in the EGL Genesis contract to help the network get established. ETH donations are paired with EGLs and deployed to an ETH-EGL pool using the Balancer protocol during the Genesis event.
Through genesis, EGL holders can vote on their desired gas constraints to earn extra EGLs based on their initial gas limit vote upon registration. Balancer pool tokens and EGLs are released between 10 and 52 weeks from Genesis, depending on the period of involvement, and voting yields additional EGLs. EGLs for bonus voting are not available until all Genesis tokens have been issued.
Genesis Supporters get 1.250 billion EGLs as part of the EGL smart contract, which is equivalent to the number of EGLs provided to mining pools as an incentive for their continuous service.
Ethereum Eagle (EGL) Tokenomics
The total pool of EGL tokens is 4 billion. The Ethereum community gets 2 billion EGLs while miners get 1.25 billion EGLs as a reward for their efforts.
A total of 750 million EGLs are granted to EGL investors and early investors of the EGL initiative. Also, a percentage of the tokens from the Creators pool is reserved for a small group of investors - specifically the ones who supplied the initial cash required to support the early development phases of EGL.
Ethereum Eagle (EGL) Price
Ethereum Eagle (EGL) is now trading at $0.0478, as of August 26, 2021.
When Will Ethereum Eagle (EGL) Hit 1 Cent?
As of August 17, 2021, Ethereum Eagle (EGL) is trading at $0.00478. The popularity of Ethereum is on the rise, as the coin continues to break its previous price records every day. With ETH ranking at #2 on the cryptocurrency market (BTC at #1), EGL holders can expect a steady rise in their holdings in the near future. Whether Ethereum Eagle (EGL) will hit 1 cent or not will be determined by two things:
- How well does Ethereum perform in the long run?
- How many competitors offer the same or better proposal on ETH gas limits similar to EGL?
Both these factors plus the market volatility of cryptocurrencies make it hard to guess the exact timeline when EGL will hit 1 cent.