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.

Ethereum's Transition to Proof-of-Stake Yields Deflationary Results
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.

Comments

Post a Comment

Popular posts from this blog

Manta Network battles DDoS attack after TGE as new Telegram bot steals the show

Manta Network battles DDoS post-MANTA launch; 135M RPC requests flood, causing delays. Bitbot revolutionizes retail trading on Telegram with non-custodial, AI-backed solutions. BITBOT token presale unfolds across 15 stages, offering investors a structured opportunity. In a whirlwind of recent events, Manta Network faced a DDoS attack right after the successful launch of its MANTA token, causing a stir in the crypto community. Meanwhile, Bitbot, a Telegram trading bot, is making waves by empowering retail investors. Jin us as we delve into the challenges Manta Network is facing and explore Bitbot’s mission to put institutional-grade tools in the hands of individual investors. Manta Network DDoS attack Manta Network, a modular blockchain protocol renowned for its focus on zero-knowledge (ZK) application development, encountered a significant setback shortly after the launch of its governance token, $MANTA. The network experienced a Distributed Denial o...
Read more

DOGE price prediction as expert forecasts target above $0.10

Image
With the previous week bringing gains for the cryptocurrency market, some digital assets displayed promising signals that might indicate their future movement. Dogecoin (DOGE) is one of those. The TD Sequential has recently generated a buy signal on the 3-day chart for Dogecoin. The probability of a resurgence to $0.100 or beyond appears favorable, contingent upon the sustained stability of the $0.074 support cluster, per a post on X by crypto analyst Ali Martinez on January 14. TD sequential for Dogecoin on a 3-day price chart. Source: Ali Martinez The TD sequential is a robust tool crafted to pinpoint the precise moment of trend fatigue and subsequent price reversal. As a counter-trend instrument, it addresses the limitations observed in various technical Analysis indicators that prove profitable in trending markets but exhibit suboptimal performance in sideways or ranging markets. Another technical indicator is not so optimistic Many technical indicators should be employed t...
Read more

IRS, Treasury temporarily waive business crypto reporting requirements

IRS and Treasury say businesses do not have to report cryptocurrency receipts until new regulations are issued. In a press release on Jan. 16, the Internal Revenue Service (IRS) said in a joint statement with the U.S. Treasury Department that American business es do not have to report their receipts in crypto currencies the same way they do with cash. However, the regulators noted the exception will only last “until Treasury and IRS issue regulations.” “Treasury and the IRS intend to issue proposed regulations to provide additional information and procedures for reporting the receipt of digital assets, giving the public an opportunity to comment both in writing and, if requested, at a public hearing.” The IRS The announcement does not impact the rules in place before the Infrastructure Investment and Jobs Act for reporting cash received in the course of a trade or business, the IRS said, adding that cash transactions over $10,000 received in a trade or bu...
Read more