Fun

Ethereum’s Transition to Proof-of-Stake Yields Deflationary Results

News Feed - 2023-02-21 04:02:57

Ethereum"s Transition to Proof-of-Stake Yields Deflationary Results


After the transition from proof-of-work (PoW) to proof-of-stake (PoS), Ethereum’s annual issuance rate has been reduced to negative 0.057%, according to statistics 158 days after The Merge. The metrics indicate that more ethereum tokens have been removed than issued, and if the chain were still under PoW consensus, 1,823,678 ether would have been minted to date. Ethereum’s Negative Annual Issuance and Unlocked Ether in March Could Shift Equilibrium


Statistics from the analytics website ultrasound.money show that the Ethereum network is deflationary these days. More than 1.023 million ether is removed from circulation annually, according to metrics following the London hard fork’s implementation of EIP-1559. Since the transition from proof-of-work (PoW) to proof-of-stake (PoS) known as The Merge, the current annual issuance rate is negative 0.057% or -29,797 ether. Data from the analytics website ultrasound.money shows Ethereum’s issuance rate is currently -0.057% per annum on Feb. 20, 2023.


The data shows that more ethereum (ETH) is currently being removed from circulation than is being issued. If Ethereum were still using PoW, the issuance rate would increase by about 3.49% annually. As of 10:30 a.m. (ET) on Feb. 20, 2023, data indicates that 1,823,678 ethereum tokens would have been added to the number of coins in circulation under PoW consensus. As of 10:55 a.m. (ET) on the same day, approximately 120,491,331 ethereum (ETH) tokens are in circulation.


At that same time, 16,763,815 ether is locked into the Beacon chain contract, and when the Shanghai update occurs in March, many of those coins could be released from their locked state. The locked ether represents $28.61 billion of the second-largest cryptocurrency’s $205.77 billion market valuation, or 13.91% of the circulating supply and market value. According to statistics from ultrasound.money, Ethereum’s current annual issuance rewards are 4.1%, and the burn rate for non-stakers is 1.8% per year. Tags in this story Altcoins, Annual Issuance Rate, Beacon Chain, Blockchain, Burn Rate, Change, circulating supply, crypto assets, Cryptocurrency, Cryptography, Decentralized, deflation, deflationary, EIP-1559, ETH issuance rate, Ethereum, future, inflation, inflation rate, issuance, issuance rate, Locked Ether, London Hard Fork, Market Valuation, merge, metrics, Non-Stakers, PoS, PoW, Proof of Work, Proof-of-Stake, Rewards, Shanghai Update, Smart Contracts, The Merge, Tokens, Ultra Sound Money, ultrasound money


What do you think the future holds for Ethereum’s issuance rate and circulating supply as the network continues to transition to proof-of-stake and implement updates like the upcoming Shanghai update? Share your thoughts in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Helium Network Migration to Solana Blockchain in March Drives Significant Gains for SOL and HNT Tokens ALTCOINS | 6 hours ago Nearly 3 Billion BUSD Stablecoins Have Been Removed From the Market in 6 Days ALTCOINS | 24 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons, Editorial photo credit: ultrasound.money Previous articleTOTHESMART Is Transitioning to Its Own Token What Is the TTS Token Phenomenon? Next articleExpert Predicts Looming Economic Collapse as BRICS Nations Unite Against the Dollar Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItTony Hawk"s Latest NFTs to Come With Signed Physical Skateboards


Last December, the renowned professional skateboarder Tony Hawk released his “Last Trick” non-fungible token (NFT) collection via the NFT marketplace Autograph. Next week, Hawk will be auctioning the skateboards he used during his last tricks, and each of the NFTs ... read more.Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design

News Feed

XRP Price In 2026? Pattern From 2017 Reveals How It Will Happen
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Many Major Airlines Can Now Accept Cryptocurrencies via UATP Global Payment Network
Many Major Airlines Can Now Accept Cryptocurrencies via UATP Global Payment Network Universal Air Travel Plan (UATP) is bringing more than 300 airline members and travel merchants
CropBytes Games Celebrates a Milestone Unheard of, ‘4 Years of Sustainable Web3 Gaming’
CropBytes Games Celebrates a Milestone Unheard of, ‘4 Years of Sustainable Web3 Gaming’ press release PRESS RELEASE.For a gaming community to complete 4 years in the crypto gami
Facebook’s Libra Association Shrugs Off Regulatory Concerns, Prepares Launch for 2020
The Libra Association behind Facebook"s cryptocurrency is confident in 2020 launch. | Source: ShutterstockBertrand Perez, the general director of the Libra Association, has expresse
Apple Co-Founder Steve Wozniak Expects Bitcoin to Hit $100K — Says ‘I Just Really Feel It From All of the Interest’
Apple Co-Founder Steve Wozniak Expects Bitcoin to Hit $100K — Says "I Just Really Feel It From All of the Interest" Apple co-founder Steve Wozniak expects the price of bitcoin to
Kingdom Karnage Raises $2M From Animoca Brands, Enjin and DFG to Boost GameFi Features
Kingdom Karnage Raises $2M From Animoca Brands, Enjin and DFG to Boost GameFi Features press release PRESS RELEASE. United Kingdom — January 13th, 2022 –Kepithor Studi
Hong Kong broker offers new customers deposit bonuses in Bitcoin
Amaka Nwaokocha10 hours agoHong Kong broker offers new customers deposit bonuses in BitcoinWith the inclusion of Bitcoin rewards, Futu Securities aims to attract a new wave of investors.1770 Total views3 Total sharesList
Crypto․com CEO Kris Marszalek Accuses Coinmarketcap․com of ‘Arbitrarily Reducing’ Exchange Rankings
Crypto․com CEO Kris Marszalek Accuses Coinmarketcap․com of "Arbitrarily Reducing" Exchange Rankings Crypto․com CEO Kris Marszalek has an issue with coinmarketcap.com
Abkhazia Extends Internet Restrictions for Cryptocurrency Miners
Abkhazia Extends Internet Restrictions for Cryptocurrency Miners The government in Abkhazia has extended an order prohibiting access to internet sites used by cryptocurrency miners
South Africa Leads Crypto Revolution in Africa – Challenges Spur and Slow Adoption
South Africa Leads Crypto Revolution in Africa – Challenges Spur and Slow AdoptionAfricans rank atop global cryptocurrency ownership rates, according to a new report by Arcade Res
Derek Andersen5 hours agoSam Bankman-Fried sues insurance company for defense costs as trial opensSBF has directors and officers coverage through FTX Trading parent Paper Bird, but now that two companies have paid out $1
Libra Shows Central Banks’ Failure on Cross-Border Payments: Riksbank
Facebook’s Libra has been a wake-up call for central bankers. Now one such official – Gabriel Soderberg of Sweden’s Riksbank – says cross-border payments are where policymakers need to play ca