Ethereum Burns $2.8 Billion Worth of ETH through EIP-1559 Protocol

The Ethereum Improvement Proposal-1559 (EIP-1559) has withdrawn approximately $3 billion in ETH from circulation less than a year after it was activated.

According to Ultrasound. money’s most current statistics, EIP-1559 has burnt over $2.8 billion in ETH at a rate of 5.23 ETH per minute. At the moment, the protocol consumes around 1.8 ETH per minute.

The “London Hard Fork” update to Ethereum’s blockchain, which took place in August of last year, gave rise to five new proposals, one of which is EIP-1559.

There is a fee-burning mechanism that was added by EIP-1559. In order to conduct transactions, Ethereum users are required to pay a tiny cost known as “base fees.”

EIP-1559 proposes to decrease the supply of ETH by burning a portion of the daily base fees, which might lead to an increase in the asset’s price.

Another update, called the “Ethereum Merge,” is set to follow Ethereum’s London hard fork.

A significant update to the Ethereum network, known as Merge, will see the network switch from its current consensus method, Proof-of-Work (PoW), to Proof-of-Stake (PoS).

Using PoS, Ethereum developers are convinced that Ethereum will consume less energy, making the blockchain more environmentally friendly.

The Ethereum Merge, like the London hard split, has been postponed multiple times before its execution. However, Ethereum co-founder Vitalik Buterin announced only a few weeks ago that the merger would take place in August of that year. There are no guarantees that the upgrading will take place in September or October of 2022.

The network’s engineers have been testing the update utilizing portions of the network in preparation for the Merge. The mainnet’s readiness for the upgrade will be determined by how well these tests perform on small portions of the network. By running these tests, we can have a good idea of what the Merge will look like when it is completed. They also uncover any potential technical issues or defects.

Three shadow fork tests were done at the same time. Beacon, a prospective Ethereum blockchain, was successfully tested on Ropsten, a public testnet, soon after.

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