Since the launch of the Ethereum Improvement Proposal (EIP) 1559 in the London hard fork, the blockchain has burned a total of 2.783 million Ether (ETH), which is currently worth $8.76 billion.
According to data provided by Ethereum burn tracking service ultrasound.moneysince the beginning of london hard fork As of early August, the network is burning Ether at an eye-watering average rate of $12.100 per minute.
A token burn refers to the permanent destruction of a certain number of tokens. Burning is usually a process in which coins are sent to a public address that is not accessible by anyone.
Token burn is often implemented as a way to manage inflation. Another use case is to demonstrate a company’s commitment to the long-term success of the token. The burning is meant to reduce the overall supply of the coin, potentially increasing its value.
EIP-1559 The change was proposed in the Ethereum blockchain. It aims to improve the efficiency and scalability of the network. When implemented as part of the London hard fork, it introduced a dynamic gas price based on supply and demand, with a base fee that increases with excess gas burned. This is why Ethereum has been so burned so far.
Network data also shows that the supply of Ethereum has decreased since the abandonment of Proof-of-Work (PoW) in favor of Proof-of-Stake (PoS). PoS validator nodes require significantly less computing power and energy to run, which allows the network to award significantly less rewards to those running the servers that keep the network running through issuing new Ethereum. .
The network policies mentioned above result in less new Ethereum being issued, which has resulted in Ether becoming a deflationary asset. Ether supply peaked at 121.3 million in September and now stands at 120.1 million ETH – a decrease of about 1%.