[shreder]

Congratulations to the Ethereum and crypto community London Consensus upgrade is LIVE and successful! Ethereum is being burned at an astonishing rate. Imagine every single person holding ETH right now is benefiting from the slight deflationary pressure! This is the positive of a mechanism that benefits ALL, rather than a few. For those curious about EIP-1559 you can read more about it here: https://hackmd.io/@timbeiko/why-1559

Over 20+ ETH already burned: https://ethburned.info/



Spoiler (Click to View)



Q & A

Q: What if my wallet doesn't support EIP-1559?

A: "You'll essentially fall back to the worst settings possible under EIP-1559. Specifying the gas price is the same as specifying the same value for max fee and max priority fee, which will burn the base fee and pay the rest to miner."- Banteg


Q: Do I have to do anything with my ETH?

A: No, sit back and watch inflation fall as deflationary pressure hits.


Q: What is the TL;DR version of the benefits of EIP-1559

A: Better transaction fee estimation, Quicker block inclusion, Requiring fees to be paid in ETH, Fee burn, Mitigating Risks of Near-Head Re-Orgs, & Making DoS/Spam Attacks Exponentially Costly Over Time.

https://hackmd.io/@timbeiko/why-1559


Q: Where can I see the burn?

A: On this site, you can view the cumulative burn of ETH https://ethburned.info/


Q: Can I see an example or guide on how to set the gas fees?

A: Here an overview of how to set your fees on your EIP-1559 supported wallet. https://consensys.net/blog/metamask/cons...-eip-1559/

[xchngd]

Holy cow. Over 300+ ETH burned already. Is there any way to compare this to the amount being created over a given day & see whether there is actual deflation?

[shreder]

Holy cow. Over 300+ ETH burned already. Is there any way to compare this to the amount being created over a given day & see whether there is actual deflation?

We would need to burn over 13,000+ ETH daily to be deflationary which is likely not going to happen YET (Merger :)))))))))). However, there is significant deflationary pressure. If you are a hodler of ETH you are benefiting right now!

https://etherscan.io/chart/blockreward

[Mr Kewl]

Only 1 comment on this legendary thread literally shows how people are NGMI.

[xchngd]

We would need to burn over 13,000+ ETH daily to be deflationary which is likely not going to happen. However, there is significant deflationary pressure. If you are a hodler of ETH you are benefiting right now!

https://etherscan.io/chart/blockreward

Hmm... so the coin will remain inflationary then even if this update is creating deflationary pressure to partially counter it - I understand.

One of the reasons I saw ETH as a strong investment was because I thought inflation would drop significantly (nearly to zero, or become deflationary optimally) - do you ever see ETH becoming actually deflationary?
And if not, won't the supply just keep growing and growing until it's almost worthless in the long term?

[shreder]

Hmm... so the coin will remain inflationary then even if this update is creating deflationary pressure to partially counter it.
I think one of the reasons I saw ETH as a strong investment was because I thought inflation would drop nearly to zero - do you ever see ETH becoming actually deflationary?
And if not, won't the supply just keep growing and growing until it's almost worthless in the long term?

A tiny bit of inflation is fine btw. But when the merger hits where inflation drops by nearly -96% and EIP-1559 burning. We should have occasionally deflationary days if not near 0% inflation. I don't think we'll break 120m ETH at this rate, even if we do it isn't a big deal. ETH does not need to be deflationary, the deflationary pressure is MORE than sufficient now. And will be even more so when PoS merger comes.


This is very conservative as I am assuming the base fee is low and the staking amount is high it is still deflationary.


https://ultrasound.money/

[OliverSc]

That's very nice for ethereum, bull for it!

Spoiler (Click to View)

[PoLoW]

You already have THREE other threads on EIP1559 and just keep going.  Stop trying to cover up the explanations people already made on your previous pump and dump threads that prove you are lying.  No one wants to have to explain the same shit over and over.

https://hackforums.net/showthread.php?tid=6143123
https://hackforums.net/showthread.php?tid=6162455
https://hackforums.net/showthread.php?tid=6166155

You're saying the new update is useless? Don't intend to read all of that.

[darkair]

No, I'm saying the new update has trade offs:

could you name a few trade offs? i'm actually curious if it's too good to be true

[Manks]

So it is time to buy or what

[shreder]

The priority fee (Fee that is given to miners to include tx sooner) + economical benefit due to deflationary pressure Ethereum block subsidy increase in value due to scarcity is greater security for the network than before. Miners still find it more profitable to play by the rules, if not even more so for the fact that ETH likely hit it's peak issuance ceiling 100 years before BTC.


Deflationary thanks to the latest NFT drop lmao. Mind you EIP-1559 effects are LONG TERM, as more wallets and tools support EIP1559 the better it will be over time. EIP-1559 is a game changer.


https://www.etherchain.org/burn

---

Here you can see the better UX in effectively saving you gas fee.

Example: If you set your gas fee to maybe 1,000 gwei when it was really 200 gwei. Pre-london the miner would have kept that 1,000 gwei, but post-london the excess gas fee is returned to sender. Meaning you would spend 200 gwei rather than 1000 gwei saving you 800 gwei.



Here in this transaction you can see that user set a maximum fee of 724 gwei, with priority fee (tip paid to miner) of 2 gwei. The blocks base fee was actually 372 gwei meaning with the priority fee they paid 374 gwei total instead of 724.

Pre-London: You set 724 in gas. The actual gas price (372) = 724 gas spent, overspent by 50%~

Post-London: You set 724 in gas. The actual gas price (372) + Priority fee (2) = 374 gas spent saved 50%~ as excess gas is refunded.

This is a savings of 50% on gas fee that otherwise would have been ripping off the sender had it not been for the better UX. This is the power of a mechanism that rewards ALL, not just a few.

---

So it is time to buy or what

Should have been buying for a while now 😆

[₿itcoin]

At the moment 10.55 ETH is being burned per minute
15.192 ETH  per day are burned at this rate

18.919 ETH  are created per day

Seems pretty good to me, compared to before.

[Omniscient]

I just don't believe in the short-term the burn rate is enough to matter to the market beyond sentiment.

Latest burn page shows 215 ETH burned in the last hour. So based on that in a day it's 5200 ETH about.

Rewards are about 2 per block and that's every 12-15 seconds. From 11-12k ETH in daily rewards.

https://bitinfocharts.com/ethereum/

Meh, I guess burning half the mining rewards isn't too bad. Why do the burn then and not just cut the mining reward in half?

[darkair]

I just don't believe in the short-term the burn rate is enough to matter to the market beyond sentiment. 

Latest burn page shows 215 ETH burned in the last hour.  So based on that in a day it's 5200 ETH about. 

Rewards are about 2 per block and that's every 12-15 seconds.  From 11-12k ETH in daily rewards.

https://bitinfocharts.com/ethereum/

Meh, I guess burning half the mining rewards isn't too bad.  Why do the burn then and not just cut the mining reward in half?

idk if i'm right but by only reducing the mining fee by half, technically the other half isn't burnt right? it would be in circulation?

[PR1V473]

I think it's safe to say that ETH will surpass BTC in MCAP in the next 3-5 years. Waiting for a nice entry point @ 1900-2200$ ETH. Instead of throwing in 40k $ into mining equipment which will become obsolete in ETH mining after 1year-1year and a half, I'll invest into ETH instead.