What happened: Just yesterday a total of 7,011.29 Ether ETH/USD worth $29,144,302 was burned from Ethereum transactions. The net annualized issuance rate for Ether yesterday was 1.93%.
Why it matters: On August 5th, 2021, the Ethereum blockchain implemented an important upgrade known as EIP-1159. This Ethereum improvement proposal changed the fee model drastically. Now each transaction includes a variable base fee that adjusts according to the current demand for block space. This base fee is burned, or permanently removed from circulation, lowering the supply of Ether forever.
See Also: How to Buy Ethereum & When Will Ethereum 2.0 Launch
Ethereum is currently issuing new Ether at a rate of 4% per year, although this is expected to decrease to around 0.5-1% as a part of the Ethereum 2.0 upgrade. Once this occurs, many speculate that the burn rate of Ether will be greater than the token's issuance, causing ETH to become a deflationary currency.
Data provided by Glassnode
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