The Ethereum Merge: A Year of Changes
It has been one year since the Ethereum network underwent a significant transformation known as the Merge. This transition from proof-of-work (PoW) to proof-of-stake (PoS) has brought about several notable changes in the world of Ethereum.
Burning ETH
Since the implementation of the Merge, approximately 980,000 ETH have been burned, according to Sassal, a prominent figure in the Ethereum community. The burning of ETH occurs through the London hard fork upgrade, which introduced a fee-burning mechanism. Transaction base fees are now immediately burned after a transaction is processed. This deflationary mechanism aims to reduce the overall supply of Ether.
Reduction in Supply
As a result of these burning mechanisms and other factors, the Ethereum supply has decreased by 0.25% since the Merge. This reduction in supply contributes to making Ether a scarcer asset over time.
A Shift in Network Security
The transition to PoS has also led to a change in how the Ethereum network is secured. Validators now play a crucial role in securing the network by staking their ETH, whereas miners were previously responsible for this task under the PoW consensus. Since the Merge, over 11.6 million ETH has been staked by validators to ensure network security and earn passive income in return.
ARK Invest’s Involvement
ARK Invest is one of the entities that have participated in staking ETH since the Merge. This demonstrates growing interest and confidence from institutional investors towards Ethereum and its new consensus model.
Hot Take: The Evolution of Ethereum
The past year has been transformative for Ethereum, with significant changes resulting from the Merge. The burning of ETH, reduction in supply, and the shift to PoS have all contributed to the evolution of this leading cryptocurrency. As Ethereum continues to adapt and improve its network, it remains a prominent player in the crypto space.
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