After the transition from Proof of Work (PoW) to Proof of Stake (PoS), statistics from The Merge 158 days later show that the annual issuance rate of Ethereum has been -0.057%. decrease. This metric shows more Ethereum tokens removed than issued, and if the chain was still under PoW consensus, 1,823,678 Ethers would have been minted to date.
Negative annual issuance of Ethereum and unlocked Ethers in March could shift the equilibrium
Statistics from analysis site ultrasound.moneyshow that the Ethereum network has been deflating recently. According to indicators after the implementation of the London hard fork EIP-1559, more than 10.23 million ether have been removed from circulation annually Since the transition from proof-of-work (PoW) to proof-of-stake (PoS), known as The Merge, the current annual issuance rate is -0 .057%, or -29,797 ether.
This data shows that moreEthereum (ETH)is currently being removed from circulation than is being issued. If Ethereum were still using PoW, the issuance rate would increase by approximately 3.49% per year; as of 10:30 a.m. ET on February 20, 2023, 1,823,678 Ethereum tokens would be added to the circulation coin count under the PoW consensus. As of 10:55 AM ET on the same day, approximately 120,491,331Ethereum (ETH)tokens were in circulation.
At the same time,16,763,815 etherswere locked to the Beacon chain contract, and many of those coins could be released from their locked status when the Shanghai update takes place in March. Locked ether represents $28.61 billion of the $205.77 billion market valuation of the second largest cryptocurrency, or 13.91% of the circulating supply and market value. ultrasound.money statistics show that ethereum’s current annual issuance fee is 4.1% of its non-staker burn rate is 1.8% per year.
What do you think will happen to Ethereum’s issuance rate and circulating supply in the future as the network moves to proof-of-stake and implements updates like the upcoming Shanghai update? Share your thoughts in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons, Editorial photo credit: ultrasound.money
