Since the EIP-1559 upgrade went into effect in August, more than 1 million ETH has now been burned and taken out of circulation.
At today’s prices, the value of burnt Ethereum is more than $4.2 billion.
reveal data Received from “Watch The Burn” reports that more than 1,012,680 ETH has been burned since the London split and upgrade on August 5th.
The network proved capable of maintaining a high burn rate, which saw the destruction of its first billion dollars in about a month.
At the time, approximately 1.5 million Ethers were minted and distributed to miners as collective rewards.
However, there have been times when the burn rate has exceeded the release rate, such as earlier this month.
The objective of the London split was to reduce transaction fees by changing the fee structure of Ethereum.
Instead of transferring fees to miners, they are now compensated almost entirely through block rewards.
While part of the fee is sent to the address of the burner, where the funds will no longer enter the circulation.
However, the fees for Ethereum are still very high, which is reflected in the number of Ethereum burned so far.
Buterin and other Ethereum community voices now favor moving certain functions from the mainnet to the second layer of Ethereum to reduce network blockages.
In general, the Ethereum community is enthusiastic about development, improvements and upgrades, seeing the high burn rate as a positive characteristic.
Some even believe that this makes it a better, more “good” money than Bitcoin, given the perfectly consistent supply of the latter.
However, Ethereum remains a net inflationary currency and does not have a specific supply cap.
Its issuance rate has decreased by 67% since the “EIP 1559” upgrade.
While it has fallen significantly, it is not entirely deflationary.
A deflationary currency has high transaction fees.
While this low Ethereum supply helps HODLers, it hurts users who are already trying to spend and transact on the network.
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