CHART OF THE DAY
Ethereum’s net issuance has declined significantly over the past few years thanks to two protocol changes.
- EIP-1559 was released in Aug 2021 and introduced a transaction fee burning mechanism. The higher the avg txn fee, the more ETH is burned.
- ETH’s PoW to PoS transition allowed for ETH holders to begin staking ETH on the beacon chain in late 2020. Any ETH currently held in this staking contract is locked, effectively removed from the circulating supply, until an unstaking mechanism is introduced into the protocol.