According to Ethburned.info, over $400 million worth of ETH has now been burned by Ethereum Improvement Proposal (EIP) 1559, an upgrade to the Ethereum network that destroys transaction fees instead of handing them to miners. At the time of writing, the network now destroys about 300 ETH per hour.
The network attained the notable height at about 10 AM UTC on Sunday, after removing a total of 124,865 ETH from circulation. At the time of writing according to Ethburned.info, a total of 133,672.66 ETH has been burned by the Ethereum blockchain, while 341.31 ETH has been destroyed in the last hour.
On 5th August 2021, EIP-1559, the upgrade that has been aiding the burning of ETH, was implemented along with the London Upgrade. The upgrade is targeted at stabilizing the volatile transaction fees of Ethereum (ETH) and hastening the transition to Ethereum 2.0, the next generation of the Ethereum blockchain.
With the implementation of EIP-1559, mining on the Ethereum network has become notably unprofitable compared to the way it used to be. Now, fees are completely destroyed instead of enriching Ethereum miners that validate transactions.
However, miners can still be paid to speed up transactions, but such a tip is now optional for users.
When Ethereum 2.0 is fully launched, miners will no longer be needed on the network. They will be replaced by proof-of-stake (PoS) validators. However, the much-awaited transition may not play out until early next year.
What Will Ethereum 2.0 Do?
Ethereum 2.0 is coming to change the way Ethereum transactions are processed. Under the current proof-of-work (PoW)’s system, miners have the right to validate transactions with their most powerful computers.
On the other hand, under the anticipated PoS consensus algorithm, validators win the right to validate transactions if they pledge the most ETH. Also, the upgrade is expected to make Ethereum blockchain 99.5% more environmentally friendly.