Ethereum is deflationary?

[Webetcoins]

Being deflationary depends on the supply factor. I think when a coin is created in a way that it would be reducing in supply, say for example that there is 100,000 supply of the coin and the devs have made it in such a way that it would be reducing 2% or so every year, then that would mean it is deflationary, because as the supply continues to reduce every year by 2% the demand becomes more due to the scarcity and the value of one coin would increase.

That’s why you would see some coins these days that are being burnt every year as a way to reduce the number of coins. You would see some of them start with 1 million and before you know it 500k has been burnt and the number of coins reduce to half.

[bitkanu]

Is Ethereum now a deflationary

Deflationary can happen once the burn will be more than the tokens minted. Ethereum was not a deflationary token. I don't see any point to call this as a deflationary coin. As far as i know ethereum has burn mechanism but remember that it's not always the burn is burning more ethereum compared with the new ethereum minted from the network. it's too early to call ethereum as a deflationary coin.

currency after its hard fork which changed it to PoS?

Im not sure if ethereum will be fully going to the POS. Ethereum has not done yet with its roadmap and it needs at least 1 or 2 years to see that will happen. Im feeling skeptical if roadmap will be fully implemented withouot any change at the middle of progress. So many hardfork already passed and it will not come son. POS may get another delay again.

[tvplus006]

The amount of burned Ethereum can be easily tracked by the link: https://ethburned.info/ Thus, since the activation of the London hard fork, which was launched on August 5, 2021, and to date, 1773033 ETH has been burned. But I did not find information on how much ETH was minted during this period. If you know both figures, then you can easily tell whether Ethereum is deflationary or not.

[zasad@]

Is Ethereum now a deflationary currency after its hard fork which changed it to PoS?

See my old post
https://bitcointalk.org/index.php?topic=5257133.msg54686098#msg54686098
The PoS algorithm will reduce the emission of Ethereum by several million coins. 1,773,720.62 ETH was burned in 7 months. If miners stop receiving rewards, then the number of coins will decrease
https://ethburned.info/

[tvplus006]

The amount of burned Ethereum can be easily tracked by the link: https://ethburned.info/ Thus, since the activation of the London hard fork, which was launched on August 5, 2021, and to date, 1773033 ETH has been burned. But I did not find information on how much ETH was minted during this period. If you know both figures, then you can easily tell whether Ethereum is deflationary or not.

I have done additional research on this issue and can now say for sure that Ethereum is not deflationary. So as of August 5, 2021, when the London hard fork was activated, the Circulating Supply amounted to 116,980,175 ETH (Archive - https://web.archive.org/web/20210805135537/https://coinmarketcap.com/ ) Circulating Supply for today is 119,470,469 ETH, that is 2,490,294 ETH more than at the time of the launch of the hard fork London. Since the issue of ETH has increased, it means that Ethereum is currently inflationary.

[magneto]

If the amount of coins burned exceeds staking rewards, then sure.

But I don't think that this is currently the case per se.

I think that ETH will be less inflationary compared to BTC in the long run, though. This is just a function of its emission curve which is a lot flatter than even BTC due to the burned tx fees. It will be an interesting dynamic for sure, perhaps ETH prices will benefit as a result.

[eaLiTy]

~
Oh is that so? But I have heard the term deflationary applied to Bitcoin because of its coin cap of 21 million. I was thinking since a similar thing is happening with Ethereum where there are fewer coins entering the market than before, it might also be deflationary.

You cannot really compare the deflationary value of BTCitcoin who is 21 million coins total and close to 19 million coins in circulation while ETH does have over 120 million coins in circulation as we speak and we are talking about deflationary coin is a joke because we are changing the parameters on the go and both are not the same .

~
I think that ETH will be less inflationary compared to BTC in the long run, though. This is just a function of its emission curve which is a lot flatter than even BTC due to the burned tx fees. It will be an interesting dynamic for sure, perhaps ETH prices will benefit as a result.

You create billion of coins in circulation and you burn out a few and call it an interesting dynamic, first lets see whether they can settle the scaling issue they are facing for over an year then we can talk about the financial aspects, because without a functioning technology there is no valuation.