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How Does Proof-of-Stake (PoS) Issuance Compare to the Burn Rate in Ethereum’s Economics?

PoS issuance rewards validators, while the burn rate reduces supply; the net result determines if ETH is inflationary or deflationary.
Greeks.Live29.10.25

How Does Proof-of-Stake (PoS) Issuance Compare to the Burn Rate in Ethereum’s Economics?

In Ethereum's PoS model, new ETH is issued as staking rewards to validators who secure the network. The burn rate, introduced by EIP-1559, removes ETH via the Base Fee from every transaction.

The net change in ETH supply is the difference between the issuance and the burn rate. If the burn rate is consistently higher than the issuance, Ethereum becomes deflationary.

This balance creates a dynamic and demand-driven monetary policy.

What Is the Primary Risk Associated with a High Burn Rate in a Blockchain’s Monetary Policy?
What Is the Estimated Capital Cost to Acquire 51% of the Stake in a Major PoS Network like Ethereum?
How Does a Token Buyback Differ from a Coin Burn?
What Is the Role of a ‘Validator’ in the Ethereum Proof-of-Stake System?

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