Ether (ETH), the native cryptocurrency of the Ethereum network, is set to become net-inflationary again after two years and 143 days of being deflationary. The introduction of "blobs" last April reduced gas fees for Layer Two (L2) networks, resulting in less ETH burned and the return to an inflationary environment. However, this switch back to inflation is still an improvement compared to the previous proof-of-work (PoW) system, which would have led to an additional 9.5 million ETH supply since the switch to proof-of-stake (PoS). Ethereum continues to make scaling improvements, with an increased gas limit being adopted to accommodate more transactions or complex transactions. There is a debate about whether to focus on technical improvements or creating a more dynamic environment for DeFi activities. Some treasury funds are set to be deployed into a DeFi Multisig for use in the sector.
Content Editor ( protos.com )
- 2025-02-04
Ether to become net-inflationary over 2 years after PoS Merge
