🔥 $13M Worth of ETH Burned: Ethereum's Ongoing Transformation
In a significant development, 5,879.90 Ether (ETH/USD) valued at $13,871,399 was burned from Ethereum transactions on Wednesday. Burning involves sending coins or tokens to an unusable wallet, effectively removing them from circulation.
🔍 What Happened:
This burning event underscores Ethereum's ongoing evolution, primarily driven by the implementation of EIP-1159 on August 5, 2021. This Ethereum Improvement Proposal introduced a revolutionary fee model. With each transaction, a variable base fee is calculated, adapting to the current demand for block space. Crucially, this base fee is burned, permanently reducing the supply of Ether.
💡 Why It Matters:
Ethereum, currently issuing new Ether at a 4% annual rate, is set to undergo further changes with the Ethereum 2.0 upgrade. Anticipated to decrease to 0.5-1%, this transition could potentially turn ETH into a deflationary currency. Yesterday's net annualized issuance rate for Ether stood at an intriguing -5.65%, indicating a potential shift toward deflation.
🛠️ The Ethereum 2.0 Impact:
As Ethereum moves towards a more sustainable issuance model, the burn rate of Ether may surpass its issuance rate, potentially positioning ETH as a deflationary asset. This shift could have profound implications for Ethereum's long-term value and utility.
📈 Stay Tuned for Ethereum's Transformative Journey! Follow The Blockopedia for Real-time Updates! 🚀
