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ETH is inflationary now, and the burn rate won't save it

· 5 min read
Aubury Essentian
Ethereum Research

When Ethereum transitioned to proof-of-stake in 2022, the combination of EIP-1559 burning and reduced issuance made the supply actually deflationary during periods of high activity. You'd see charts showing ETH supply shrinking, treasury posts celebrating "ultrasound money," and a widespread assumption that high network usage would keep issuance in check.

That assumption is dead. The data from the last four months makes it clear.