Why Has ETH's Supply Increased Since the Merge?
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The combined Ethereum overhauls in the last year were supposed to result in a reduction in ETH supply, so why has the opposite happened?
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The Merge reduced ETH emissions by 89.4%, but validators are still being rewarded new ETH.
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Transaction fees need to reach 16 gwei or higher in order for Ethereum’s fee burning mechanism to completel
y offset ETH issuance.
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Ethereum’s token supply is still increasing despite the blockchain’s transition to Proof-of-Stake.
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Without the shift to Proof-of-Stake, the supply would have increased by more than 20,994.04 ETH already—instead of merely 418.88 ETH.
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