EIP-1559 Upgrade Now Burns More than 200,000 Ethereum

Kavya  |  Sep 6, 2021

EIP-1559, a recently released version that cuts down transaction fees that used to go to miners, has burned over 200,000 Ethereum (about $675 million at the time it was destroyed).

EIP-1559 Burns Over 200,000 Ethereum

According to ethburned.info, a total of 204,281.8 Ethereum worth $682 million has been burnt.

Each hour, around $1.2 million worth of ETH, or 300 ETH, is burnt. Today, 4,877 ETH has been burnt. The network burnt 10,675 ETH yesterday and 13,839 ETH on Friday.

EIP-1559 was introduced in early August as a means of speeding up the transition to Ethereum 2.0, the next-generation version of Ethereum that shifts the blockchain from proof-of-work, a computationally intensive method of verifying transactions, to proof-of-stake, an environmentally friendly algorithm that uses far less energy.

EIP-1559 does this by removing ETH from circulation rather than giving it to miners who confirm transactions using proof-of-work computations. 

The switch to EIP-1559 enraged miners who had invested in graphics cards capable of mining Ethereum.

ETH's Blockchain Will "Merge" With The PoS Version Later This Year Or Early In 2022

Later this year or early in 2022, Ethereum will “merge” with the proof-of-stake version of its blockchain. However, Ethereum 2.0 will not have the same smart contract capability as Ethereum 1.0 for a few years.

EIP-1559 was expected to have the unintended consequence of lowering or making fees more predictable. Fees on Ethereum, on the other hand, remain high and are certain to raise more if the revival of NFT projects continues.

As of this writing, Uniswap charges $76.31 for a single swap and $24.8 for an ERC-20 transfer. 

The most gas-guzzling NFT marketplace is OpenSea, which utilized 11.65% of all gas on the Ethereum network in the last 3 hours and 15 percent in the last day.

Miners will undoubtedly be envious.

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