Almost $6B in ETH were burned as Ethereum 2.0 gets closer and now there are more than 2 million coins destroyed in the burn mechanism introduced last year so let’s read more in today’s latest ethereum news.
Ethereum’s burn mechanism is more popular than ever as the second biggest network has officially destroyed almost $6B in ETH or over 2 million coins since its introduction last August. According to watch the burn, the dashboard monitoring the burn mechansim, we can see that a total of 2,000,996 ETH has been burned since its inception which is more than $5.82 billion removed from circulation forever.
The implemented London HArd fork, EIOP 1559 is the technical name for the burn mechansim and was just one of the few updates that were made to the network. The specific Ethereum Improvement Proposal restricted the fee structure of the network. Instead of the fees paid to execute various operations on ETH going to the miners, EIP-1559 split the fees into a base fee and tips. Once the base fee is burned, it is another way of saying that cryptocurrencies are destroyed and removed from circulation. The burn mechansim fueled the “ultra-sound money” meme too.
The meme follows that when there’s a spike in activity of ETH and it is possible that teh destruction of the supply can outpace the amount issued on the block rewards. This creates a deflationary effect where there are fewer and fewer ETH on the market to buy. Joe Lubin, the Etheruem co-founder, and ConsenSys CEO reminded that another upgrade will bring the meme into the greater focus even.
Alongside the London Hard fork, ETH is also getting closer to the comprehensive upgrade. Etheruem 2.0 will improve the network’s transactions speed, low costs and will lay to rest the ETH carbon entry of footprint problem. The upgrade will shit ETH from a PoW consensus mechansim whcih is also used by Bitcoin, to a different model dubbed PoS and the latter mechansim is more environmentally friendly as it demands less computing power.
As recently reported, Ethereum’s Optimism scaling solution announced it raised $150 million and the startup added that the cash now means the company has a valuation of $1.65 billion. Optimism is a startup that wants to use Ethereum and make the process cheaper and easier. This is because lots of people are using Ethereum to build things and make transactiosn with the native cryptocurrency Ether.