The process of excluding part of Ethereum (ETH) network fees from circulating supply accomplishes another milestone
Since Ethereum Improvement Proposal 1559 went live on the Mainnet on August 5, 2021, the total value of destroyed ethers has exceeded $ 2.4 billion.
Ethereum is on its way to deflationary asset status
According to data shared by automated analytical instrument ETH Burn Bot, the aggregated number of Ethers destroyed surpassed 600,000 yesterday in the late-night hours.
As Ethereum has returned above $ 4,000 on the major spot crypto trading platforms, this amount equates to $ 2,406,906,000.
As covered by U.Today previously, over the past month, Ethereum (ETH) users paid more than $1,000,000,000 in network fees; 82.45% of these fees were burned.
What is EIP 1559 and how does it work?
EIP 1559 is the most controversial Ethereum upgrade ever, as it completely redesigned the pricing model for the very first smart contract network.
With EIP-1559 implemented by the London hardfork, network fees are replaced by base fees and miner tips. When Ethereum blocks are more than 50% full, it means the network is more active and the base charges increase accordingly.
Then, base fees are “burned,” i.e., some Ethers are periodically excluded from circulation. This design makes the Ethereum fee pattern more predictable and ultimately makes Ether deflationary.
