Since the launch of the EIP-1559, an upgrade to change how Ethereum calculates and processes network transaction fees last August, thousands of Ethereum have been destroyed and taken out of the picture.
The continuing Ethereum burns come in the process of making the cryptocurrency deflationary, and some blocks have been achieved too. Ethereum is put into the cycle of circulation with each block, and the rate of issuance currently is estimated that 603,000 Ethereum will be put in circulation each year. The values of issuance would have been increasing had the burn not been implemented.
As per data, the issuance rate has significantly declined to post the network moving from a proof of work to a proof of stake mechanism. It is observed that 4 million tokens were being issued previously compared to current values by a drop of more than 60%.
Coming to the stats involving the burn, data suggest the value of the burn has been rising, and it is expected that an estimated 835,000 Ethereum would be burned each year, and about a total of 2,666 million Ethereum has already been burned after the launch of EIP-1559. Thus proving that more Ethereum is expected to burn than was put into circulation for the first time since the network launch, as reported by Todayq.
Previously, when the network was still using proof of work, new tokens were introduced at the rate of 3.66% every year, which is very high compared to Bitcoin’s issuance rate of 1.72%. However, the shift to proof of stake has changed the dynamics considering that the Ethereum issuance rate has declined to 0.7% each year, much less than that of Bitcoin.
About a month ago, the merge was completed, and if the network were still on proof of work, there would have been a total of 353k put into circulation within this time frame compared to the current 7k Ethereum addition. Also, Ethereum staking has significantly elevated, with more than 14.3 million coins currently staked.