Featuring Ethereum Improvement Proposal (EIP) 1559, the London hard fork introduced significant changes to Ethereum’s transaction fee mechanism. Users now pay a base fee that is subsequently burned, effectively removing ether from circulation forever.

This approach significantly impacted the token’s supply, resulting in a monthly burn rate of approximately 146,000 ETH.

The London Hard Fork And Its Deflationary Impact

Integrated into the Ethereum network on August 5, 2021, the London hard fork brought a paradigm shift in the cryptocurrency’s transaction fee structure.

Through the EIP-1559, the network introduced a unique mechanism that involved the burning of a significant portion of transaction fees, known as the “base fee.” This innovative approach aimed to counterbalance Ethereum’s …