Months before Ethereum transitioned from proof-of-work (PoW) to proof-of-stake (PoS), a simulation of The Merge had shown the network’s issuance rate would drop following the ruleset change. Statistics now show that the simulation’s predictions have come to fruition as the network’s issuance rate has slowed significantly since September 15, following the Paris Upgrade that triggered The Merge.
Ethereum’s Issuance Rate Sinks Lower Post-Merge
Since August 5, 2021, Ethereum has changed from being inflationary to deflationary by introducing the ruleset upgrade EIP-1559. Essentially, the change reconfigured the algorithm tied to the base fee per gas in the protocol, and since EIP-1559 was codified, the network now burns the base fee per gas. Since the August 5 London Upgrade, the network has destroyed 2,627,061 ether worth $8.56