- Television personality and businessman Kevin O’Leary states that Ethereum is “ultra sound money” as there is no supply floor once the altcoin becomes deflationary.
- An Ethereum burn bot detected a temporary negative issuance, more deflationary blocks are being produced.
- In the largest DeFi hack, attackers exchanged USDT and USDC for DAI; this shows that the Ethereum chain is not as resistant to censorship as unspent transaction output blockchain systems such as Bitcoin.
EIP-1559 has improved Ethereum in more than one way. The protocol slowly turns ETH deflationary and makes it expensive for hackers to launder stolen crypto through mining pools.
EIP-1559 makes ETH deflationary, supports ‘ultra sound money’ narrative
Ethereum improvement proposal (EIP) 1559 went live in the ETH London hardfork last week. It takes a portion of transaction fees and burns it instead of distributing it to miners. Traders and analysts expect this property to make ETH deflationary since burning ETH reduces its supply and availability.
EIP-1559’s deflationary properties are now more clear with nearly 800 “deflationary blocks” on the ETH network. When ETH burned by the protocol is greater than the mining reward, the block produced is deflationary. The production of a deflationary block implies that the supply has decreased temporarily, and currently there are 1,046 deflationary blocks, according to Carbano, an advisory firm.
Number of deflationary blocks produced on ETH
Number of deflationary blocks produced on ETH
ETH Burn Bot is recording the results of the burn driven by EIP-1559’s implementation on Ethereum supply and sharing it on Twitter.
In the past couple of days, the ETH network was busy, resulting in a spike in more gas being burnt than usual. ETH supply was deflationary for almost 2 hours. The ETH Burn Bot recorded an instance of temporary negative issuance of -417 ETH on August 11. This is equivalent to a deflation rate of -3.12% annually.
945.1184 $ETH burned last hour.
Issuance: 528.0000 ETH
Net Change: -417.1184 ETH
Annualized: -3.12%2021-08-10 22:00-23:00 UTC
Last Block: 13000300
Cumulative : 24,942.1282 ETH— ETH Burn Bot (@ethburnbot) August 10, 2021
