First deflationary weekly ETH issuance

Scarcity should be the main word for 2021, as people realize the fundamental difference between an infinitely printable fiat money and crypto.

#Bitcoin of course is a benchmark of scarcity, conceived as such from the beginning, but Ethereum – which has no hard cap – is catching up pretty quickly using a different method.

Since the London fork containing the EIP1559 update miners’ fees are calculated differently: instead of users bidding for blockspace with a solid fee, it is now separated in two parts – the “base fee” (determined algorithmically) and the “priority fee” (set by users). The base fees, fluctuating from 25% to 75% of the total, are being burned with each transaction.

Now for the first time its weekly issuance has become deflationary. The data by ultrasound. money indicates over 103k ETH are burnt in the last 7 days, while the weekly issuance rate is normally of 84-91k ETH.

So now Ethereum is not only the main framework for DeFi and NFT development, but also a scarce asset. That’s a sunny outlook ☀️