While the shift to Proof-of-Stake greatly reduced Ethereum’s ETH emissions, higher transaction fees are necessary for the network’s monetary system to become deflationary.
ETH Total Supply Inflating
Ethereum’s token supply is still increasing despite the blockchain’s transition to Proof-of-Stake.
According to data from ultrasound.money, at the time of writing, Ethereum’s token supply had grown by 418.88 ETH since the blockchain was successfully upgraded on September 15.
Some thought that Ethereum’s switch from Proof-of-Work to Proof-of-Stake, known in the crypto space as the “Merge,” would immediately result in Ethereum’s monetary system becoming deflationary. Unlike “inflationary” money, a deflationary system is characterized by a gradual reduction in the money supply over time. Although the supply of ETH did briefly drop in the immediate aftermath of the Merge (by 248 ETH within twelve hours of the upgrade), it has now reached a new all-time high.
So, did Ethereum’s Merge fail to...
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