According to Ethereum co-founder, Vitalik Buterin, the Ethereum blockchain will destroy ether tokens. He practically means that radical upgrade could challenge bitcoin by ethereum. Ethereum’s upgrade called EIP-1559 is processing towards ethereum 2.0, overtaking the current transaction fee system. The users will send the fee amount directly to the network instead of the miners. These fees received then will be burned, resulting in less ether supply.
“If bitcoin and its availability is sound money, then if you have a lowering availability, does that make ethereum ultrasound money,” asked Vitalik. “Sound money” refers to the stability of the currency and utility in terms of value.
However, Buterin mocked off the question as a “joke” he went on to explain that there’s a distinct possibility of the radical upgrade to the ethereum network. This is approved by developers last week and expected to be deployed in July. Therefore, resulting in the ethereum supply shrinking.
If the use of Ethereum is high enough, then there would actually be more being destroyed than is being created, Buterin said. Actually, it’s not even that far-fetched a possibility. If you look at the transaction fees for the last month, they actually have been on a lot of days greater than the block rewards for that day.
A Delhi University graduate, paving her way in the world of writing. An optimist, creative, and go-getter. Loves to read, research, and write about different topics in technology or cryptocurrency, and serve them to the readers in the most meaningful way possible.