Following the much-anticipated London upgrade, which included a token burn mechanism on Ethereum (ETH), the network is currently burning 3.68 ETH ($10,295) every minute on average
Among several other changes, Ethereum Improvement Proposal (EIP) 1559 mandated that a percentage of all transaction fees, known as the base fee, be destroyed in each block rather than flowing to miners. Among other changes, Ethereum Improvement Proposal (EIP) 1559 mandated that a percentage of all transaction fees, known as the base fee, be destroyed in each block rather than flowing to miners.
According to the proposal’s description, this was done to counterbalance Ethereum inflation while still providing miners with the block reward and priority fee (the maximum fee users are prepared to pay to have their transaction included in a block).
According to Etherchain.org, around 3.7 ETH (just over $10,000 at current rates) are burned on Ethereum every minute. Meanwhile, just hours after the London update was applied, 630 ETH (about $1.77 million) were burned. Over the last hour, the base charge has ranged between 70 Gwei ($5.84) and 100 Gwei ($8.34).
According to Ultrasound.money data, the popular non-fungible token (NFT) marketplace OpenSea is currently the top “ETH burner,” with over 69 ETH ($193,124) tokens destroyed as a result of transactions it facilitated since the update.
Following OpenSea are two iterations of the decentralised finance (DeFi) trade protocol Uniswap—Uniswap V2 (53.33 ETH) and Uniswap V3 (53.33 ETH) (45.25).
So far, experts and community members alike have expressed support for the London makeover.