What’s going on with Ethereum? EIP-1559 is forcing Layer 2 to the forefront.

Balla Ji
5 min readMay 15, 2021

Half life is the time that it takes for half of the original value to decay. One half life is the time that it takes for the activity of a source to fall to half its original value. The second law of thermodynamics can be used to help understand why radioactive decay occurs.

  • The half-life of monetary energy stored in a weak fiat currency is around 2 years given countries with deeply corrupt governments such as Venezuela and Argentina.
  • The half-life of money in a strong fiat currency is ~5 years (not much better, but enough time for you to earn, use, and deploy) given the massive QE across global central banks. Joe Biden has 3 stimulus packages with a current total of $6 trillion on the way!
  • Doge which began in 2013, has a half-life of approx. 20 years. Shorters be warned!
  • The half-life of bitcoin is potentially centuries. If not forever, dependent on continual adoption along the S curve. And the supply emission tailing off in 2140.


ETH likely has the second longest, half-live in crypto. It has the largest group of developers. Berlin has been released which helps speed up transaction times while slightly reducing fees. But the real major jump will be this July when EIP-1559 will be released. Making Ethereum deflationary by burning ETH thus making its supply even more scarce. Ethereum already has a supply shortage! As Ethereum is being withdrawn from exchanges into long term storage, Defi and NFTs locking up large amounts of ETH, institutions, and companies recognizing Ethereum as well as BTC, plus the launch of Ethereum ETFs! There is not enough to go around!!

EIP-1559 if successfully launched, should propel the price of Ethereum to unthinkable heights. It is $3888 as of right now May 15th. Just simple supply and demand at work.

My chart from tradingview @ BallaJi

Layer 1 rivals such as Cardano (ADA) and Binance Smart Chain (using BNB) will co-exist as their fees and transaction times remain well below that of Ethereum’s.

Trading fee’s on BSC. A non-BNB Asset = 0.1% : in BNB 0.04%

Ethereum’s transaction fees remain exorbitant right now, but it offers the greatest network effect. Thus its perceived level of security would appeal to larger companies who can afford the higher fees. Smaller companies may opt for Cardano and high-frequency traders of “shit” coins will choose Binance due to the near-zero fees. Even though it lacks decentralization — which is not of importance to adrenaline junkies.

Layer 2 companies such as Fantom (FTM), Solana (SOL), Polygon (MATIC), and Harmony (ONE) which co-exist alongside ETH offer superior scalability thus their transaction times are a huge help to ETH as both platforms can be used together.

While some think decentralized computer crypto companies such as ETH, Cardano (ADA), and EOS can co-exist much as PCs such as Dell and Compaq hit their stride in the 1990s and beyond, ETH has a powerful network effect in the form of its level of security. While companies can easily port over to ADA, a large company is unlikely, and has already integrated into the ETH ecosystem. The benefits outweigh the fees.

Should Bitcoin eventually solve its scaling issues (an ongoing issue for many years)— and make it simple for companies to port over, it is likely to dominate since it is the most secure network with its massive hash rate. Right now, the narrative of Bitcoin being digital Gold, with its disinflationary protocol and its SoV (store-of-value) killer app will co-exist with Ethereum with its up-and-coming deflationary coin metrics.

The MAJOR negative of this move by consenus/ethereum by moving to a deflationary model, once Ethereum embarks on it’s moon mission to 100X and beyond. Is that it increases the incentive to move away from using this digital oil to hoarding this valuable commodity. Amazon Web Services runs 1/3rd of global Cloud infrastructure services. A true global computer.

More than 60% of Ethereum nodes run in the cloud, 25% on Amazon Web Services.

As this becomes more common knowledge, the notion of a decentralized blockchain world computer narrative is killed. Joe Lubin decided to opt for tokenomics that Pumps instead. Users be damned. Show me, the Benji's $$$!!!

PULSECHAIN. The New Kid On The Block. A multichain universe is inevitable.

I’m a Hexican and proud to have learned about crypto from Richard Heart prior to HEX launching. So I watched with great interest, as he went about crafting and releasing a Blockchain savings product, running on the best public blockchain (at the time). Fees were negligible in the early days, sending Erc-20’s — cost only pennies. Creating staking contracts for 1 or 2 dollars! Granted I knew the bear market, would not last forever, and expected a Bull market and Ethereum’s fees to naturally rise. As blocks become fuller and the economic energy within the industry multiplyed. But $70 to send a digital token in the era of Venmo and Cashapp… seems like pure greed and not how businesses are run. fleecing your customers is a quick way to ensure they will never come back.

There are 1/4 million Hex wallets and over thirty thousand savers on the network. Forking over thousands of dollars to transact on ethereum… money that could have been used to secure their financial future by saving not burning. Not to mention the many thousands of new savers being priced out of using HEX.

Enter Pulse chain. A fork of ethereum to alleviate the pain of the masses. 4x faster blocks. Cheaper. Also designed to appreciate (like HEX). Do you wish you could go back to the days when Ethereum was under a dollar?

Many will FUD you from participating, like the Bitcoiners who fudded Vitalik Buterin’s ICO pre-launch. Some bitcoiners decided to depart with their precious Bitcoin, understanding the role that smart contracts would play in the future of crypto. 31 529 Bitcoins were sacrificed for ethereum’s ICO, based on a whitepaper. An ethereal idea if u will.

Pulse will launch fully operational with economic energy provided by the many Hexicans around the world. The market cap of HEX currently stands at $31 Billion dollars. How many ethereum and other Erc20’s will be injected into Pulsechain from day 1??? I don’t know… ethereum’s crowd sale attracted 18.4 million USD in bitcoin at an average price of $583.

If 30,000 Hex savers sacrifice 1 ethereum it would equal $117,000,000. I shall be sacrificing more than 1 ethereum … see chart below.

Pulsechain is a blessing. Long term savers should be rewarded for their commitment. Richard Heart will make it so… for the second time.