Following the long-awaited London upgrade for Ethereum which introduced token burning, the network has already started burning 3.68 ETH ($10,295), on average, every minute.
With the EIP-1559 upgrade, a portion of all transaction fees is now burned, aka destroyed, instead of going to miners.
This was done with the goal of counterbalancing Ethereum’s inflation while maintaining the block reward and priority fee to miners.
Early this morning, about 3.7 ETH (a bit more than $10,000) was being burned every minute on Ethereum. 630 ETH (about $1.77 million) were burned only hours following the deployment of the London upgrade.
NFT marketplace OpenSea is currently the biggest “ETH burner” as more than 69 ETH ($193,124) tokens were already burned as a result of the transactions made there.
The top 3 is rounded by Uniswap v2 and Uniswap v3, with 53.33 ETH, and 45.25 ETH, respectively.
The upgrade was received with positive feedback from both experts and the community members.
Ross Middleton, the CFO of DeversiFi, declared: “The much anticipated EIP1559 network upgrade was a huge day for the Ethereum cryptocurrency ecosystem. Now, every transaction, NFT purchase or loan on the Ethereum network will result in ETH being burned out of existence, making ETH a deflationary and inflation-busting asset.”
He further made a comparison to traditional stocks, saying this is like “Apple Inc burning AAPL shares every time someone bought something from the Apple App store or made an in-app purchase.”