EIP-1559
Ethereum upgrade introducing base fee and ETH burning — deflationary force.
EIP-1559 is an Ethereum Improvement Proposal implemented in August 2021 (London hard fork), fundamentally changing the fee model on Ethereum.
Before EIP-1559:
•Simple auction — pay as much as you want, higher gas price for faster inclusion
•All gas fee went to miners
•Unpredictable for users
After EIP-1559:
•Base fee — automatically determined by network, variable
•Priority fee (tip) — voluntary tip for miners/validators
•BASE FEE IS BURNED — disappears from circulation forever
Burning effect:
•During periods of high network activity, more ETH is burned than created
•ETH becomes deflationary (net supply decreases)
•"Ultrasound money" narrative — ETH vs BTC on deflationary characteristics
Tracking: ultrasound.money — real-time burn statistics
Since The Merge (2022): ETH is created only through PoS rewards (~0.5% annually), and burned through transactions — net deflation during high activity periods.