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BoBo-R

@bobo-r

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After the transition to Ethereum 2.0, the issuance rate of ETH is significantly reduced. In the previous PoW consensus mechanism, a large number of ETH were issued as block rewards. However, after the transition to the PoS consensus mechanism, PoW mining block rewards are cancelled, and new ETH are only issued through staking rewards. It is estimated that the annual inflation rate of ETH will drop from 4.3% to 0.43%. In addition, the EIP - 1559 transaction fee burning mechanism will consume ETH with the use of the network. When the Gas fee of Ethereum is greater than or equal to 7 gwei, the burning speed of ETH will be faster than the issuance speed, resulting in a deflationary situation for the total amount of ETH. The decrease in supply increases the scarcity of ETH, which is beneficial to the long - term value of ETH.
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