Since Ethereum Improvement Proposal 1559 went live in mainnet on Aug. 5, 2021, the total value of Ethers destroyed surpassed $2.4 billion.
Ethereum is on its way to deflationary asset status
According to data shared by automated analytical instrument ETH Burn Bot, the aggregated number of Ethers destroyed surpassed 600,000 yesterday in the late-night hours.
Cumulative 600,000 $ETH burned! 🔥 ($2,406,906,000)— ETH Burn 🔥 Bot 🦇🔊 (@ethburnbot) October 22, 2021
As Ethereum is back above $4,000 on major spot crypto trading platforms, this sum is equivalent to $2,406,906,000.
As covered by U.Today previously, over the past month, Ethereum (ETH) users paid more than $1,000,000,000 in network fees; 82.45% of these fees were burned.
The milestone of 500,000 ETH burned was achieved by the second cryptocurrency in mid-October.
What is EIP 1559 and how does it work?
EIP 1559 is the most controversial Ethereum upgrade ever as it entirely reconsidered the fee model of the first-ever smart contract network.
With EIP-1559 implemented by the London hardfork, network fees are replaced by base fees and miner tips. When Ethereum's blocks are more than 50% full, that means the network is more active and base fees increase as a result.
Then, base fees are "burned," i.e., some Ethers are periodically excluded from circulation. This design makes the Ethereum fee model more predictable and, eventually, makes Ether deflationary.