$53 Million of ETH BurnedAug 19, 2021
EIP-1559 is living up to expectations as a potential deflationary force for ETH supply. Since the London Hard Fork (when the EIP was implemented) on Aug. 5, over 17,000 ETH, or $53 million as of the time of writing, have been burned. Before the EIP was implemented, miners would’ve pocketed all of that ETH as revenue for their services. However, with the new burn in place, miners earned just over 250 ETH in the same span of time. The average ratio of ETH burned to ETH sent to miners is currently 1:0.015 (or 1.5%).
Ethereum miners made a killing over the last year as network usage and the median fee soared. With EIP-1559, miners are no longer the sole beneficiaries of rising Ethereum usage — token holders now reap economic incentives via the burn mechanism. It’s worth noting that mining Ethereum is still profitable, and the network’s hash rate continues to rise.