Over Two Million Ethereum Burned Since EIP-1559 Launch

Ethereum blockchain network has just burned over 2 million $ETH worth about $5.7 billion, since the implementation of EIP-1559.

EIP-1559 Has Burned 2 Million Ethereum

According to Watch the Burn, a platform monitoring the burn mechanism, the network has destroyed a total of 2,000,996 Ethereum which means more than $5.82 billion has been removed from circulation forever. Since Ethereum upgraded to London hardfork last year, the total supply of $ETH has faced deflationary pressure via a fee burning proposal known as EIP-1559 that burns a portion of the gas fee with every Ethereum transaction. EIP-1559 was devised to adjust Ethereum’s fee market as Ethereum gas fees previously adopted an auction system that made transaction costs unpredictable. With EIP-1559, Ethereum users pay a minimum fee for transactions known as the “base fee,” and they can add an optional tip to miners to get their transaction through faster during periods of high congestion.

Shifting to Proof-of-Stake

Ethereum is also inching towards its most comprehensive upgrade yet that will shift the network away from its proof-of-work something that Bitcoin also uses to validate transactions, to a different model called proof-of-stake (PoS). The latter mechanism is more environmentally-friendly as it demands less computing power to achieve comparable levels of security.