2023-03-21
Since the Ethereum foundation implemented the Merge on September 15, 2022 or 187 days ago, 66,877.16 ETH have been burned. Ether burning is a part of EIP-1559, also known as London Hard Fork that effective on August 5, 2022. 2.2 million ETH (about $9 billion worth of ETH) have been burned since August 2021. EIP-1159 implements a mechanism that burn a portion of gas fees from every transaction on Ethereum blockchain. It makes Ethereum deflationary. The number of ETH supply is steady at 120 million ETH since August 4, 2022. According to ultrasound.money, the number of ETH is projected to have 117.9 million ETH in 2025. If cryptocurrency market grows, the value of Ether you hold will grow even more since Ethereum is deflationary.
What is EIP-1559?
EIP 1159 aims to make Ethereum deflationary and reduce gas fees.
It also improves mechanism for gas fees by separating gas fees into 3
categories.
1. Base Fees
Base fess will be set as a minimum charge from Ethereum network and manage
burning mechanism to reduce numbers of ETH in circulation.
2. Priority Fees
A way to pay
extra fees to miners that will help speed up your transactions.
3. Max Fees
It sets the
maximum amount for paying fees to prevent excessively and unreasonably high
fees.
A chart from ultrasound.money projects ETH supply from 2016-2025.
Currently $31 billion worth of ETH is in validator PoS smart
contract.
Ethereum Proof-of-Stake Smart Contract
Address: 0x00000000219ab540356cBB839Cbe05303d7705Fa
ETH Balance: 17,774,503.163245128027575318 ETH (as of March 3, 2023)
Value: $31,032,860,562.77 (@ $1,745.92/ETH)
