Saturday, September 30, 2023
HomeEthereum'Ultra Sound Money' — Post-Merge Stats Show Ethereum's Issuance Rate Plunged After...

‘Ultra Sound Money’ — Post-Merge Stats Show Ethereum’s Issuance Rate Plunged After PoS Transition – Technology Bitcoin News

Months before Ethereum moved from Proof of Work (PoW) to Proof of Stake (PoS), simulations from The Merge showed the network’s issuance rate declining following a ruleset change. . After the Paris Upgrade that triggered The Merge, the network’s issue rate dropped significantly after September 15th, so statistics show that the predictions of the simulation came true.

Ethereum Issuance Rate Drops After Merger

After August 5, 2021, Ethereum went from inflation to deflation with the introduction of a ruleset upgrade.EIP-1559Essentially, this change reconfigured the algorithm associated with the protocol’s base rate per gas. Since EIP-1559 was codified, the network now consumes a base rate per gas. Network destroyed since London upgrade on August 5th 2,627,061 Ether Worth $8.56 billion. However, since The Merge, Ethereum has become even more deflationary as changes have redefined the protocol’s issuance rate.

“Ultra Sound Money” — Post-Merge Stats Show Ethereum Issuance Rate Plummeted After PoS Transition
Provides growth and issuance stats if Ethereum was still a PoW chain. Ultrasound

For example, metrics from the web portal Showing 3,076 ethereum If Proof of Work (PoW) miners were still mining Ether, they would have produced 53,694 Ether since the start of the merge. Current data shows that Ethereum’s issuance rate after the merger was more than 94% lower than he would have been if the blockchain had remained his PoW network. ethereumThe deflationary property of is considered beneficial as it causes ether to become scarce over time.

EIP-1559 and post-merger rule-set changes reduce Ethereum by 4.6 million by next year

Currently, according to post-merger data, 297,000 ethereum Burned annually at current rates, issuance decreased from 3.78% p.a. to 0.22% p.a. to 0.25% p.a. Prior to The Merge, the miner was generating 4,931,000 Ether per year, but since the protocol changed to his PoS, the annual issuance has decreased to 603,000 Ether per year.

“Ultra Sound Money” — Post-Merge Stats Show Ethereum Issuance Rate Plummeted After PoS Transition
Post-merger statistics show that issuance has declined significantly since the transition. Ultrasound

At the time of writing, ethereum There is a circulating supply of 120,583,249 Ether, totaling $158.57 billion in USD value at current exchange rates.

“Ultra Sound Money” — Post-Merge Stats Show Ethereum Issuance Rate Plummeted After PoS Transition data show ethereumIssuance of PoW if remaining, ethereumthe current issuance of, and Bitcoinhas an annual inflation rate of 1.72%.

This means that if Ethereum were not merged by September 19, 2023, the total supply would be around 125,514,249, not accounting for the burn rate of EIP-1559. Due to the burn rate and post-merge rules, ethereumTotal supply by September 19, 2023 should be an estimated 120,889,249, or 4,625,000 Ether less than the previous PoW consensus rule.It’s similar to Features of Bitcoin Halving, ethereum Proponents believe that the aforementioned rule set changes will make Ether more difficult than traditional sound money.

Tags for this story

0.24%, August 5th, bitcoin halving, Burned ETH, code, code base, deflation, EIP-1559, ETH burn, ethereum merge, inflation, annual inflation rate, inflation, issuance rate, London upgrade, Paris upgrade, Change ruleset, rarity, sound money, Tech, technology, merge, merge changes, ultra sound money

What do you think about the change in Ethereum issuance rate following The Merge and EIP-1559 introduced last year? Let us know your thoughts on the matter in the comments section below.

Jamie Redman

Jamie Redman is a news lead for News and a financial technology journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 6,000 articles for News about disruptive protocols currently emerging.

image credit: Statistics from Shutterstock, Pixabay, Wiki Commons and

Disclaimer: This article is for informational purposes only. This is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. It is not intended to provide investment, tax, legal or accounting advice. NEITHER THE COMPANY NOR THE AUTHOR WILL BE LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY DAMAGE OR LOSS ARISING OR ALLEGED TO OCCUR ARISING OUT OF OR RELATING TO YOUR USE OF OR RELIANCE ON ANY CONTENT, PRODUCTS OR SERVICES DESCRIBED IN THIS ARTICLE. We are not responsible.

- Advertisment -
Google search engine

Most Popular

Recent Comments