Skip to main content

‘Ultra Sound’ Money — Simulation Shows Ethereum’s Inflation Rate Is Significantly Lower Using Proof-of-Stake

'Ultra Sound' Money — Simulation Shows Ethereum’s Inflation Rate Is Significantly Lower Using Proof-of-Stake

Its been 105 days since Ethereum transitioned from a proof-of-work (PoW) blockchain to a proof-of-stake (PoS) network and the number of Ethereum validators is set to surpass 500,000 in 2023. According to metrics, Ethereum’s issuance rate of new coins has dropped considerably and only 4,790.45 ether has been minted since The Merge took place on Sept. 15, 2022.

Ethereum’s Issuance Rate Is 0.014% per Annum in Contrast to the Simulated PoW Inflation Rate of 3.58% per Year

The Ethereum (ETH) network has been operating under its proof-of-stake (PoS) consensus algorithm for more than three months and since then, 4,790.45 ethereum or $5.7 million in value has been added to the supply. Statistics from ultrasound.money show that Ethereum’s current issuance rate of new coins per annum is 0.014%.

That’s a whole lot different than what it would be if Ethereum was still a PoW chain, according to ultrasound.money’s simulation metrics. If ETH remained a PoW chain during the last 105 days, then the issuance rating or inflation rate per annum would be 3.58%. That would be approximately 1,247,674.60 ether added to the supply by 10:15 a.m. (ET) on Dec. 29, 2022. Instead of $5.7 million in value added, a PoW ETH chain would have added more than $1.5 billion in value.

In addition to the lower issuance rate, Ethereum also has a burn mechanism, and records show roughly 658,000 ether is burned each year. To date, 2,795,773 ether or $8.78 billion in U.S. dollar value has been burned by destroying ETH since the Aug. 5, 2021 London Hard Fork. Data from Dune Analytics indicates the biggest leader in terms of the number of ETH burned is tied to traditional ethereum (ETH) transfers, which account for 247,008 ETH burned since the London Hard Fork.

The non-fungible token (NFT) marketplace Opensea and its users are responsible for burning 229,928.53 ether and the decentralized exchange (dex) Uniswap V2 has burned 143,394.07 ether since Aug. 5, 2021. Transferring the stablecoin USDT has equated to 123,014.14 ether burned to date, and Swaprouter 02 accounts for the fifth largest burner with 110,868.70 ether destroyed.

Furthermore, the number of validators validating consensus within the Ethereum network is nearing 500,000, according to current beaconcha.in statistics. On Dec. 28, 2022, 492,863 validators were recorded, which is a marked increase from last year’s number of validators 12 months ago, which was roughly 275,054. Data from mevwatch.info also shows that 69% of the blocks mined on the ETH network are enforced with the U.S. Office of Foreign Assets Control (OFAC) compliance.

What do you think about Ethereum’s network issuance rate since it transitioned from proof-of-work (PoW) to proof-of-stake (PoS)? Let us know what you think about this subject in the comments section below.



from Bitcoin News https://ift.tt/Sl6dNIE
Labels:

Comments

Post a Comment

Popular posts from this blog

Deep Web Roundup: Dream Adds Monero and Bitcoin Tumbler “Chip Mixer” Launches

The darknet has been quiet of late, which is the way it’s meant to be. No news means no mega busts, honeypots, or mass market shutdowns. Even when it’s out of the spotlight though, the deep web is quietly making news, whether trialling the latest privacy coins or the newest coin mixers that promise to restore a little of the privacy that’s being stripped away from bitcoin users on a daily basis. Also read: U.S. Agency ICE Conducts Investigations That Exploit Blockchain Activity The Battle for Privacy Heats Up Privacy is all relative, but of late there’s been relatively little privacy to be enjoyed by bitcoin users. Blockchain monitoring software is becoming more sophisticated and more common, with U.S. law enforcement agencies using it to profile and hunt down deep web users. Chip Mixer is a relatively new bitcoin tumbler that’s designed to restore some of that privacy. Available on both the clearnet and darknet, the service uses a variety of techniques to obfuscate blockchain m...
10 comments
Read more

Ombudsman Receives Complaints About Crypto Investments in Spain

The Spanish ombudsman has been receiving complaints about cryptocurrency and how some Spanish citizens investing in these vehicles have lost everything. In his annual report, Angel Gabilondo recognized the rise of cryptocurrencies as a new problem due to the little or no regulation crypto sees in the country. In the same way, the EU has also warned about these assets recently. Spanish Ombudsman Gives His Take on Crypto Angel Gabilondo, the Spanish ombudsman, has given his take regarding cryptocurrencies and the effects they have on citizens investing in some of these projects. Gabilondo said in his yearly report that cryptocurrencies have become “a new problem” during the year examined, with many people having lost all of their funds invested. The report states : Cryptocurrency exchange companies or platforms are not regulated in the legal system, are not subject to any public supervision system, nor do they benefit from deposit guarantee systems. The affected users that sought...
Post a Comment
Read more

2021 Bitcoin Price Predictions: Analysts Forecast BTC Values Will Range Between Zero to $600K

As bitcoin has touched new price highs on Thursday nearing the $50k handle, people have been curious as to where the price will go in the future. Meanwhile, despite the gains so far, a number of luminaries, analysts, executives, and proponents from the crypto space believe the leading crypto asset will reach between $60k to six-digits this year. Mike Novogratz Predicts $100K Bitcoin: ‘Other CFOs and CEOs Are Saying, What Should We Be Doing?’ Satoshi Nakamoto’s invention has gained mass appeal in recent times as the leading digital asset bitcoin ( BTC ) has reached its highest value ever in 2021. On Thursday morning (EST), BTC spiked to an all-time high (ATH) at $48,697 per unit. Earlier in the morning at around 2 a.m., bitcoin was exchanging hands for $44,485 and saw an 8.98% increase since then. At the time of publication, at 6:30 p.m. (EST) on February 11, 2021, bitcoin (BTC) is swapping for $47,821 per coin. With BTC so close to the $50k mark, people have been forecasting ...
Post a Comment
Read more