The Ethereum network has reached the 1 million ETH burning mark since the launch of its London upgrade.
The figure has been provided by WatchTheBurn, a website that tracks the transaction fee burning process. Based on the current value of Ether, the total destroyed so far amounts to over US$ 4 billion.
In August this year, Ethereum’s London upgrade, also known as EIP-1559, introduced burning transaction fees designed to make the charges easier to calculate by splitting them into two elements: a base cost and a priority fee. The base cost is burned whilst the priority fee is used to make payments to miners.
The idea behind the burning of the base fee was to reduce inflationary pressures on the currency, as the burned fees cannot be used again on the network. EIP-1559 was also designed to exert deflationary pressure on the ETH supply since the base fee gets burned and can no longer be used on the network, thus reducing the amount of inflation on the network.
"Although this is not an issue for our D¥NS as we buy the tokens back before we burn them, the move by Ethereum to make fees easier to calculate seems to have paid off, as the process of burning tokens to reduce the supply and thus help increase the value of the ETH seems to be working well since EIP-1559 came to be."
Said Eduardo Carvalho, the founder and CEO of Dynasty Global Investments AG.