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.
For example, metrics from the web portal ultrasound.money 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.
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.
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.
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.
image credit: Statistics from Shutterstock, Pixabay, Wiki Commons and Ultrasound.money.
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