• Commemorative NFTs are included in the Ethereum upgrade for reducing ETH supply

  • We’ve got just the thing for you if you’re a die-hard Ethereum network upgrader.

    Stateful Works, a project and journal aimed at encouraging the production and maintenance of public goods on the Ethereum blockchain, has released commemorative non-fungible tokens (NFTs) for a much-anticipated network upgrade. NFTs are digital tokens that grant ownership of an item, such as moving images in this example.

    The designer _kitteh’s 1559 NFTs are being sold for 0.1559 each—with one going for at least 15.59 ETH—and “will eternally act as a gesture of support for the people who delivered EIP-1559.” This comprises the authors of the Ethereum Improvement Proposal, client teams who upgraded their software, and researchers who looked into the ripple effects.

    With the impending network upgrade known as the London hard fork, EIP-1559 will go into effect. EIP-1559, at its most basic level, makes Ethereum transaction costs more transparent for users (and should even lower them a bit). Even more significantly, it “burns” those fees by moving them to an inaccessible wallet. As a result, each Ethereum network transaction reduces the amount of ETH in circulation, putting deflationary pressure on the currency (which could help the price rise).

    If you’re wondering why someone would want to purchase an NFT commemorating a code change, it’s because the folks who created the modification aren’t directly compensated for their efforts.

    “The main purpose of the NFT was to provide a sort of ‘thank you to everyone who worked on this, because, while most of them are obviously paid for their work on Ethereum, people working on the protocol don’t really have mechanisms to capture the value created,” explained Tim Beiko, an Ethereum Foundation developer who assisted Trent Van Epps in writing today’s post.

    This is due to an issue with developing and maintaining public goods—items that benefit everyone but have little incentives for people to pay for or contribute to them. Client teams frequently rely on donations and grants, as well as outside consulting and software sales. Researchers, on the other hand, can be self-employed or affiliated with a company, venture capital firm, or nonprofit.

    The goal of the NFTs is to encourage people to keep doing the legwork. Contributors receive a percentage of the revenues ranging from 1% to 14%. For example, Beiko, who has been coordinating network enhancements with core engineers, will receive 6% of the proceeds. The NFT designer will be paid 2% of the total.

    Beiko explained that he calculated the percentages “based on the amount of time and work each party had invested into the production of the EIP” before having it “sanity checked” by others.

    Not everyone is accepting donations. Vitalik Buterin, the author of EIP-1559, was one of the few who turned down the money. The Go-Ethereum client project, which receives support from the Ethereum Foundation, is also not participating.

    The project has raised over 71 ETH ($139,000) as of publication. The 1559 Supporter Series NFTs will be available for purchase until they are all gone, while the single 1559 Patron NFT will be auctioned off if its reserve price of $15.59 ($30,300) is fulfilled.

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