Approximately 70,000 ETH were burned by the EIP-1559 upgrade as the network pulled $ 221 million out of circulation. So let’s read more about the report in our Ethereum News today.
Ethereum’s developers made a change to the network that burns gas fees instead of passing them on to the miners. $ 221 million worth of ETH, or 70,000 ETH, has already been burned since the change. The network has been on fire since the EIP-1559 update went into effect, so the total amount of burned coins removed from circulation on the network exceeded 71,000 ETH, or $ 221.5 million. The upgrade that paid for transactions on the network, like swapping a coin on a decentralized exchange or transferring an NFT and EIP-1559, was one of five upgrades introduced on August 5th as part of the London Hard Fork.
Before EIP-1559, the network did not burn the tokens, but several ETH-based tokens such as Shiba-Inu burn tokens as part of monetary policy. Instead, the gas fees went to the ETH miners, which is a decentralized network of the powerful computer that keeps the network running. The network was used to determine the price of gas according to the laws of supply and demand, and EIP-1559 replaced this with a flat fee, barring exceptional congestion, as it cost 32 gwei to complete a simple transaction in 3 minutes at the time Writing.
The transaction cost is much higher for even more complicated transactions as it costs $ 8.80 to transfer a token on the NFT marketplaces. OpenSea, the largest NFT marketplace, is also the largest gas dispenser, responsible for 8750 ETH since the upgrade went into effect. OpenSea’s trading volume has skyrocketed since the CryptoPunks trading frenzy began on July 31st.
Ethereum’s gas guzzling miners won’t be here long as the network will soon move to the proof-of-stake consensus mechanism that doesn’t require miners. When that goes into effect, ETH will rely on the stakers. Ethereum stakers verify transactions by pledging ETH to the 2.0 smart contract, and all stakers are rewarded with the newly minted ETH for securing the network, just like the miners at 1.0. According to Nansen’s data, the amount wagered on Etheruem exceeded 7 million ETH, valued at $ 22.9 billion.
DC Forecasts is a leader in many crypto news categories, strives for the highest journalistic standards and adheres to strict editorial guidelines. If you are interested in offering your expertise or contributing to our news website, please feel free to contact us at [email protected]
