Ethereum Has Burned Almost 300,000 ETH Since The Transition From PoW To PoS

Ethereum is the second biggest blockchain by market capitalization and has solidify itself as the number two of cryptocurrencies.

One year ago ethereum went through a transition, leaving the proof of work model behind and adopting the proof of stake model. This change has been in its roadmap for a long time and after many delays it finally got applied.

The metrics say that during this time 680K ETH has been minted while 980K ETH has been burned, causing a reduction of 300K ETH in the supply of ETH. If the proof of work model was still active the supply of ETH would have grown 3% or 3.8 million coins. For now the proof of stake model has been working as intended, making ETH a deflationary coin.

What contributes the most for this is the portion of ETH transaction fees that are burned everytime a transaction is done. The base transaction fee is burned while the extra fee that users pay to get priority is paid to the validators to secure the blockchain.

Although the change from PoW to PoS isn't consensual, as both have its advantages and disadvantages, the current model is working exactly has the developers intended.

The next step for ETH seems to be focusing on a reduction of the transaction fees paid by the users, since the fees in a bull run get very expensive and force many users to not move their ETH at all.

Great things keep happening in the ETH ecosystem, the ecosystem seems to be healthy and accomplishing its objectives step by step.