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 calculations indicate that more ethereum tokens have been removed than issued, and if the chain was still under PoW consensus, 1,823,678 ether would have been minted to date.
Ethereum’s negative annual issuance and unlocked Ether in March may change the equilibrium
Statistics from the analytics website ultrasound.money show that the Ethereum network is deflationary these days. More than 1.023 million ethers are removed from circulation annually, according to calculations 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.
Data from analytics website ultrasound.money shows that Ethereum’s issuance rate is currently -0.057% per year as of February 20, 2023.
The data shows that more ethereum (ETH) is currently being removed from circulation than is being issued. If Ethereum still used PoW, the issuance rate would increase by about 3.49% annually. Starting at. 10:30 AM (ET) February 20, 2023 Data indicates that 1,823,678 ethereum tokens would have been added to the number of coins in circulation under PoW consensus. Starting at. As of 10:55 AM (ET) on the same day, approximately 120,491,331 ethereum (ETH) tokens are in circulation.
At the same time, 16,763,815 ethers are locked into the Beacon chain contract, and when the Shanghai update happens in March, many of these coins may be released from their locked state. The locked ether represents $28.61 billion of the second largest cryptocurrency’s $205.77 billion market cap, or 13.91% of its circulating supply and market cap. According to statistics from ultrasound.money, Ethereum’s current annual issuance rewards are 4.1%, and the burn rate for non-players is 1.8% per year.
What do you think the future holds for Ethereum’s issuance rate and circulating supply as the network continues to transition to proof-of-stake and implement updates like the upcoming Shanghai update? Share your thoughts in the comments section below.
Jamie Redman
Jamie Redman is the news editor at Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image credit: Shutterstock, Pixabay, Wiki Commons, Editorial Image Credit: ultrasound.money
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