The ETHEREUM network has been on fire since the EIP-1559 update went into effect on August 5, reducing transaction fees.
The total number of Burnt Coins withdrawn from circulation in the network currently exceeds 71,000 ETH, or $ 221.5 million.
EIP-1559 burns the ETH, which is used to pay for transactions on the ethereum network, such as currency exchange or NFT transfer on a decentralized exchange.
EIP-1559 was one of five updates offered as part of ethereum hardfork in London on 5 August.
What’s outside EIP-1559 at London-based ethereum hardfork?
Prior to EIP-1559, the Ethereum network did not burn tokens, although several Ethereum-based tokens, such as Shiba Inu, burned tokens as part of monetary policy.
Instead, gas spending went to ethereum miners, a decentralized network of powerful computers that supports the operation of the network. But now, unless users “tip” miners, miners will no longer receive these fees, instead they will be burned.
The grid is used to determine the price of gas according to the laws of supply and demand. EIP-1559 replaced this with a fixed fee, except for periods of exceptional congestion. At the time of writing, a simple transaction costs 32 gwey (US $ 2.1) to process in 3 minutes.
For more complex transactions, transaction costs are higher. The token’s transfer to NFT Sundays is approximately US $ 8.80. OpenSea, NFT’s largest Sunday, is also the largest consumer of gas, accounting for 8,750 ETH (US $ 28.4 million) since the commissioning of EIP-1559. OpenSea’s trading volumes have peaked since the cryptocurrency trading frenzy began on July 31.
And it costs US $ 20.2 to process a simple token exchange through uniswap’s decentralized funding protocol. The protocol accounts for the second-highest volume of burned gas, at 5,128 ETH (US $ 16.7 million) to date.
Gas-sucking ethereum miners won’t be here for long: the network will soon switch to a rate-approval compromise mechanism that doesn’t need miners. When this comes into force, Ethereum will rely on the strikers.
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