‘Ultra Sound Money’ — Post-Merge Stats Show Ethereum’s Issuance Rate Plunged After PoS Transition

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Months before Ethereum transitioned from Proof-of-Work (PoW) to Proof-of-Stake (PoS), a simulation from The Merge showed that the network’s issuance rate would drop following the change in rules. Statistics now show that the simulation predictions have come true as the network’s issuance rate has slowed significantly since September 15, following the Paris upgrade that triggered The Merge.

Ethereum’s Issuance Rate Low Post-Merge

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Since August 5, 2021, Ethereum has switched from inflation to deflation by introducing ruleset upgradeEIP-1559, Essentially, the change reconfigured the algorithms tied to a per gas basis fee in the protocol, and since EIP-1559 was codified, the network now burns a per gas basis fee. Since the London upgrade of 5 August, the network has been destroyed. 2,627,061 Ether The price is $8.56 billion. However, since the merge, Ethereum has been heavily deflationary as the change redefines the issuance rate of the protocol.

'Ultra Sound Money' - Post-Merge Statistics Show Ethereum's Issuance Rate Falls After PoS Transition
Supply growth and issuance statistics if Ethereum is still a PoW chain. data via ultrasound. Money.
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For example, metrics from a web portal ultrasound.money show 3,076 ETH Has been released since the merge on September 15th. If proof-of-work (PoW) miners were still mining Ether, they would have produced 53,694 Ether since the start of The Merge. Current data shows that Ethereum’s issuance rate has dropped by more than 94% after the merge, if the blockchain had remained a PoW network. ETHThe deflationary characteristics of ether are considered beneficial, as they make ether scarce over time.


4.6 million less Ethereum by next year thanks to EIP-1559 and post-merge ruleset change

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Currently, post-merge data indicates that 297,000 ETH Will be burned annually at current rates and the issuance has dropped from 3.78% per annum to 0.22% to 0.25% per annum. Prior to the merge, miners produced 4,931,000 Ether per year, but since the protocol switched to PoS, the annual issuance has dropped to 603,000 new Ether per year.

'Ultra Sound Money' - Post-Merge Statistics Show Ethereum's Issuance Rate Falls After PoS Transition
Post-merger figures show that issuance has declined significantly since the transition. data via ultrasound. Money.

while writing, ETH There is a circulating supply of 120,583,249 Ether and the total value is $158.57 billion in USD value at current exchange rates.

'Ultra Sound Money' - Post-Merge Statistics Show Ethereum's Issuance Rate Falls After PoS Transition
Ultrasound.money shows data ETHIssue on persistence of PoW, ETHthe current issue of, and B T c1.72% inflation rate per year.

This means that if Ethereum never merges, by September 19, 2023, the total supply will be approximately 125,514,249, excluding the burn rate of EIP-1559. With burn rate and post-merge rules, ETHThe total supply should be an estimated 120,889,249 or 4,625,000 Ether as of September 19, 2023, under the previous PoW consensus rules. Similar to the halving characteristics of bitcoin, ETH Proponents believe that the above rule changes will make it harder to mine Ether than traditional sound money, as proponents like to call it ‘ultra sound money’ these days.

What do you think about the change in the issuance rate of Ethereum after the introduction of The Merge and EIP-1559 last year? Let us know what you think about this topic in the comment section below.

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Credit : news.bitcoin.com

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