đ„đ What Is Ethereum Supply Burn?
Ethereum isnât just used for transactions â it has a built-in mechanism that actually destroys a portion of ETH with each transaction. This is called Ethereum Supply Burn, and itâs a key feature of the networkâs EIP-1559 upgrade.
⥠How It Works
Every time ETH is used for gas fees, a base fee is automatically burned.
This removes ETH from circulation permanently, reducing total supply over time.
Tip fees to miners or validators are separate â only the base fee gets burned.
đ Why It Matters
1ïžâŁ Scarcity & Value
Burning ETH reduces supply, which can increase scarcity and support long-term price appreciation.
2ïžâŁ Deflationary Pressure
When network activity is high, more ETH is burned â potentially making ETH deflationary instead of inflationary.
3ïžâŁ Incentivizes Network Usage
More transactions = more burns = higher demand for ETH, creating a positive feedback loop.
đ„ Final Take
Ethereum Supply Burn = built-in value creation.
Itâs like a deflationary mechanism baked into the network, turning everyday transactions into a way to support ETHâs scarcity and long-term growth.
Transact. Burn. Build value.



