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On Sunday, a staggering 4,548.49 Ether ETH/USD (valued at $10,367,331 based on the then-current Ethereum exchange rate of $2,279.29) was burnt;; transferred to an unusable wallet and thus removed from circulation.
This came as a direct consequence of the August 5, 2021 upgrade known as Ethereum Improvement Proposal (EIP-1159); in which a variable base fee for transactions was established which, importantly, exhausts Ether from the blockchain once a transaction is processed.
Should Ethereum 2.0 roll out as expected, it’s predicted that this inflow of Ether burn rate will overtake the token’s issuance; that is, the net issuance rate for Ether dropped to -3.47%. If realised, this would be indicative of Ethereum’s transformation into a deflationary currency.
