Approximately 288 days ago, Ethereum developers implemented the EIP-1559 update, which changed the algorithm tied to the base gas fee in the protocol.
After its launch in the code base, 2.35 million ethers worth $ 8.10 billion were permanently destroyed.
On May 1, 2022, the network saw the largest daily burning rate of 71,718 ethers worth $ 138.78 million The second such record was set on January 10, 2022, on that day 19,424 ether worth about $ 37.5 million was destroyed.
To date, the largest “burner” of ether is the NFT-platform Opensea, it burned 229,925 ethers for 14,639,327 transactions, Uniswap V2 burned 131,457 ether.
The next big change is The Merge update, which will migrate Ethereum to the Proof-of-Stake (PoS) algorithm from the current Proof-of-Work (PoW) consensus algorithm.
Simulations of The Merge indicate that there will be fewer ethers after the transition. Currently, the release rate of Ethereum is 5.4 million ETH per year, after the Merger, the release rate will be only about 500,000 ether per year.
If the current supply growth is 3.7% per year, after the merger it will decrease to about 0.4% per year.
Despite all these changes, the rate of burning Ethereum will remain the same and will be about 900,000 ethers per year. However, significant spikes, such as the 71,718 ethers burned on May 1, will affect the estimate.
#Ethereum #Merge #Update #Burn #Ether
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