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How Does EIP-1559 Impact Ethereum’s Supply and Inflation Rate?

Burning the base fee can make Ether supply net deflationary if the burned amount exceeds the new Ether issued as staking rewards.
Greeks.Live18.11.25

How Does EIP-1559 Impact Ethereum’s Supply and Inflation Rate?

By burning the base fee, EIP-1559 introduces a significant deflationary mechanism. The net change in supply depends on the amount burned versus the amount issued as staking rewards.

In periods of high network activity, the burning can exceed issuance, leading to a net reduction in the total supply of Ether, making it deflationary.

How Does EIP-1559 Change the Fee Market on Ethereum?
How Does EIP-1559 Relate to Ethereum’s Supply and Deflationary Mechanism?
How Does the EIP-1559 Upgrade Affect Ethereum’s Gas Fee Structure?
How Does EIP-1559 Relate to the Ethereum Fee Market?

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