Ethereum’s EIP-1559 upgrade burned $ 400 million in ETH instead of handing it over to the miners, where 200 ETH is burned per hour. So let’s read more in our latest Ethereum news.
Just over $ 400 million in ETH was burned by Ethereum’s EIP-1559 upgrade, and the milestone was exceeded around 10 a.m. UTC on Sunday. The update, which is burning ETH, went into effect on August 5th and was aimed at stabilizing Ethereum’s volatile transaction fees and accelerating the move to ETH 2.0 with the next generation of the Ethereum blockchain.
ETH trades sideways on the daily chart source ETHUSD on TradingView.com
The fieriest day for the ETH burn since EIP-1559 went into effect was August 27, when the network retired 11,176 ETH and that day coincided with high transaction fees and average fees of $ 38.3. EIP-1559 makes mining on ETH 1.0 less profitable as the fees have disappeared instead of going to the miners who validate transactions. It is still possible to pay the miners to speed up the transactions, but only if the users manually tip them. Etheruem 2.0 eliminates the miners and replaces them with proof-of-stake validators. The blockchain is expected to migrate to the PoS mechanism by the end of the year, changing the way transactions are processed. Under the Proof-of-Work System 1.0, miners are given the right to validate transactions if they have powerful computers.
As part of the Proof-of-Stake System 2.0, validators get the right to validate the transactions if they pledge most of the coins and the foundation expects ETH 2.0 to be 99.5% more environmentally friendly.
As reported recently, the Ethereum developers have made a change to the network that burns gas charges instead of passing them on to the miners. $ 221 million worth of ETH, or 70,000 ETH, has already been burned since the change. The network has been on fire since the EIP-1559 update went into effect, so the total amount of burned coins removed from circulation on the network exceeded 71,000 ETH, or $ 221.5 million. The upgrade that used to pay for transactions on the network, like swapping a coin on a decentralized exchange or transferring an NFT and EIP-1559, was one of five upgrades introduced on August 5th as part of the London Hard Fork.
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