{"id":196706,"date":"2021-08-13T02:00:35","date_gmt":"2021-08-13T01:00:35","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=196706"},"modified":"2021-08-12T15:27:12","modified_gmt":"2021-08-12T14:27:12","slug":"eth-burn-eip-1559","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/eth-burn-eip-1559\/","title":{"rendered":"$100 million in ETH burned days after EIP-1559 upgrade"},"content":{"rendered":"

Barely a week after implementing one of its cardinal upgrades, the Ethereum (<\/span>ETH<\/span><\/a>) network has burned over $100 million in fees.<\/span><\/p>\n

More than 32,000 Ethereum burned and forever removed from circulation contributed to the crypto\u2019s last week\u2019s rally.<\/span><\/p>\n

Why is Ethereum on fire<\/strong><\/h2>\n

The long-anticipated London hard fork, which included the <\/span>EIP-1559<\/span><\/a> upgrade, a reductive measure set to reign in Ethereum\u2019s supply growth, boosted the price of the world\u2019s second-largest crypto by 18.7%.<\/span><\/p>\n

Instead of going directly to the miners that process and validate transactions, since the London hard fork, Ethereum\u2019s base fees are being burned by the network and destroyed forever.<\/span><\/p>\n

The upgrade, which made the transaction fees more predictable, is playing out as envisioned in theory.\u00a0<\/span><\/p>\n

Since its implementation, Ethereum's base transaction fee is algorithmically determined and fluctuates depending on how congested the network is.<\/span><\/p>\n

Based on an automated bidding system, users tip miners for having their transactions processed quicker as the base fee amount bites the dust forever, proactively reigning in Ethereum\u2019s supply and causing its value to grow.<\/span><\/p>\n

Since the London hard fork<\/strong><\/h2>\n

Ethereum co-founder Vitalik Buterin recently <\/span>said<\/span><\/a> that the upgrade\u2019s success proved the ecosystem\u2019s ability to change for the better, showing confidence in delivering ETH 2.0, scheduled for release in early 2022.<\/span><\/p>\n

Once ETH 1.0 and ETH 2.0 chains, which will be running in tandem, finally merge, the Ethereum network will completely transition to a proof-of-stake consensus mechanism, dramatically lowering its energy consumption.<\/span><\/p>\n

Since the London hard fork has lit the bonfire on August 5, Ethereum pushed through the $3000 mark on August 7, for the first time after the May downturn.<\/span><\/p>\n

\n

Sold your $ETH<\/a> below 2k was a bad decision. pic.twitter.com\/S7Qkgg3YdH<\/a><\/p>\n

— Inmortal (@inmortalcrypto) August 11, 2021<\/a><\/p><\/blockquote>\n