Dan Morehead noted that the energy consumption of the network will be reduced by 99,95%

Pantera Capital CEO calls the Ethereum upgrade useful for the environment

27.08.2022 - 09:15

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2 min

What’s new? The CEO of cryptocurrency hedge fund Pantera Capital Dan Morehead has called the benefits of the Ethereum network’s transition from the Proof-of-Work (PoW) consensus algorithm to Proof-of-Stake (PoS). According to him, the upgrade will reduce the energy consumption of the blockchain by 99,95%, making it more resilient and having a positive impact on “an environmental, social, and governance (ESG) perspective.”

Information on the Pantera Capital website

What else does Morehead say? Another consequence of the blockchain’s upcoming upgrade will be the elimination of miner rewards and, consequently, a reduction in the daily issuance of new ETH from 14 600 to 1600 coins. According to Morehead, this will lead to Ethereum becoming a deflationary asset.

What is known about the Ethereum upgrade? Due to the algorithm change from Proof of Work (PoW) to Proof of Stake (PoS), the way coins are earned on the network will change from mining to staking. The upgrade may also result in a split into two networks, one of which will continue to run on PoW. In August, the developers published a document refuting misconceptions related to the upcoming upgrade.

What is known about Pantera Capital? The American fund was founded by Dan Morehead in 2003. He launched the first bitcoin-focused investment fund in the United States in 2013. As of January 2022, Pantera Capital had $5,6 billion in assets under management.

Earlier, Ethereum developers updated the roadmap of the upgrade. The transition could take place as early as September 10, rather than September 15, as previously thought. The algorithm change will be done in two stages: the first upgrade, called Bellatrix, will be released on September 6 at 11:34:47 UTC, in case of its successful integration, the second upgrade, Paris, will be launched.

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