đŸ”„đŸ’Ž What Is Ethereum Supply Burn?

Ethereum isn’t just used for transactions — it has a built-in mechanism that actually destroys a portion of ETH with each transaction. This is called Ethereum Supply Burn, and it’s a key feature of the network’s 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 — only the base fee gets burned.

📈 Why It Matters

1ïžâƒŁ Scarcity & Value
Burning ETH reduces supply, which can increase scarcity and support long-term price appreciation.

2ïžâƒŁ Deflationary Pressure
When network activity is high, more ETH is burned — potentially making ETH deflationary instead of inflationary.

3ïžâƒŁ Incentivizes Network Usage
More transactions = more burns = higher demand for ETH, creating a positive feedback loop.

đŸ”„ Final Take

Ethereum Supply Burn = built-in value creation.
It’s like a deflationary mechanism baked into the network, turning everyday transactions into a way to support ETH’s scarcity and long-term growth.

Transact. Burn. Build value.

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