Ethereum Burn Update: $15.3 Billion Worth of ETH Destroyed Post EIP-1559 Activation
Over the weekend, reports show that over 4.5 million ether (ETH) have been burned on the Ethereum network since August 5, 2021. This is a significant amount of cryptocurrency that has been permanently taken out of circulation. The burning of ETH is part of the Ethereum Improvement Proposal (EIP) 1559, which was implemented to help reduce the supply of ETH and potentially make it more scarce.
The process of burning ETH involves taking the fees paid for transactions on the network and permanently removing them from circulation. This helps to offset inflation and could potentially increase the value of ETH over time. Since the implementation of EIP-1559, the burning of ETH has become a regular occurrence on the Ethereum network.
It’s important to note that the burning of ETH is just one aspect of the overall changes brought about by EIP-1559. This improvement proposal also aims to make transaction fees on the Ethereum network more predictable by introducing a base fee that is adjusted based on network activity. This can help users know in advance how much they will need to pay for their transactions, which could lead to a more user-friendly experience overall.
Overall, the burning of over 4.5 million ETH on the Ethereum network is a significant milestone in the implementation of EIP-1559. It will be interesting to see how this reduction in supply affects the value of ETH in the long run and how users adapt to the changes in transaction fees.
