Ethereum’s EIP-1559 Upgrade Burned $400 Million In ETH: Report

Ethereum’s EIP-1559 upgrade burned $400 million in ETH instead of handing them to the miners where 200 ETH is being burned per hour so let’s read more in our latest Ethereum news.

Just over $400 million in ETH were burned by Ethereum’s EIP-1559 upgrade and the milestone was passed at about 10 am UTC on Sunday. The update which burns the ETH came into force on August 5 and it sought to stabilize Ethereum’s volatile transaction fees and hasten the switch to ETH 2.0 with the next generation of the ethereum blockchain.

The fieriest day for ETH burning since the EIP-1559 came into force was August 27 when the network took 11,176 ETH out of circulation and this day coincided with high transaction fees and average fees spiking to $38.3. EIP-1559 makes mining on ETH 1.0 less profitable as the fees vanished instead of going to the miners that validate tranactions. It is still possible to pay the miners to speed up the transactions but only if the users tip them manually. Etheruem 2.0 gets rid of the miners and replaces them with proof of stake validators. The blockchain is expected to swtich to the PoS mechanism by the end of the year and it will change the way the transactions are processed. Under the 1.0 proof of work system, miners are awarded the right to validate transactions if they have powerful computers.

Under 2.0 proof of stake system, validators win the right to validate teh transactions if they pledge the most coins and the foundation expects that ETH 2.0 will be 99.5% more environmentally friendly.

As recently reported, Ethereum developers implemented a change to the network which burns gas fees rather than handling them to the miners. $221 million worth of ETH or 70K ETH has already been burned since teh change. The network has been on fire since the transaction fee-burning update as the EIP-1559 came into effect so the total amount of coins burned removed from teh network’s circulation, topped 71,000 ETH or $221.5 million. The upgrade that had been used to pay for transactions on the network like swapping a coin on a decentralized exchange or transferring an NFT and EIP-1559 was one of the five upgrades introduced as a part of the London hard fork on August 5.