A jaw-dropping $400 million in Ethereum (CRYPTO: ETH) has now been burned by a network upgrade that destroys transaction fees.
- Around 200 ETH or $643,000 are burned per hour. As of Sunday, the Ethereum blockchain burned 124,865 ETH.
- The update that burns the ETH, EIP-1559, came into force on August 5.
- The ETH burning became most intense on Friday, EIP-1559 burned approximately 11,176 ETH worth around $35.8 million, coinciding with high transaction fees, with the average fees rising to $38.3.
- Ethereum is expected to switch to the proof-of-stake (PoS) mechanism by the end of 2021.
- The EIP-1559 burns ETH that had been used to pay for transactions on the Ethereum network.
- Before EIP-1559, the Ethereum network didn’t burn tokens; instead, gas fees went to Ethereum miners, a decentralized network of powerful computers that keep the network running.
- Ethereum 2.0, which is considered the next generation of the Ethereum blockchain, will change the way Ethereum transactions are processed.
- Under ETH 2.0’s proof-of-stake system, validators will win the right to validate transactions if they pledge the most ETH.
- The Ethereum Foundation expects that Ethereum 2.0 will be 99.5% more environmentally friendly.
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