The Ethereum community has often used the term "ultrasound money" to describe the network's potential as a deflationary asset with superior tokenomics compared to Bitcoin. However, a developer, antiprosynthesis.eth, challenges this narrative, suggesting it might be exaggerated and filled with jargon that could mislead users.
Antiprosynthesis.eth adopts a neutral stance, asserting that Ethereum's monetary policy aims for sustainability without the risks of hyperinflation or excessive deflation. The developer believes that the narrative around "ultrasound money" might be a bit overboard and veiled in pseudo-scientific language that might not accurately represent Ethereum's actual monetary policy.
Source: antiprosynthesis.eth via X
Ethereum's monetary policy revolves around maintaining a balance in token emissions, achieved through the burning of a portion of gas fees. Following the implementation of EIP-1559 in 2021, Ethereum modified its bidding system, introducing a base fee that users can "tip" to validators. The base fee is burnt, contributing to Ethereum's deflationary nature or, as some argue, sustainability.
In contrast, the Bitcoin network continues to issue new coins to miners until the total supply reaches 21 million BTC. The Bitcoin protocol has been halving mining rewards to achieve this distribution. The developer highlights that both Ethereum and Bitcoin have mechanisms to ensure sustainable tokenomics, and the "ultrasound money" narrative may be an optimistic assessment of Ethereum's deflationary capabilities.
Source:ETHUSDT on Binance, TradingView
As of January 10, Ethereum has burned over 3.9 million ETH since the activation of EIP-1559, confirming increased token burning. However, the network remains slightly inflationary, albeit at a decreasing rate. The developer emphasizes that Ethereum's issuance rate has been steadily dropping due to ongoing token burning activities.
Source: Ultrasound Money
While Ethereum enthusiasts champion the "ultrasound money" narrative, the developer's analysis prompts a reassessment, suggesting that the term may be exaggerated. Ethereum's commitment to sustainability through token burning is acknowledged, but the developer urges a more grounded perspective on the network's deflationary potential.
A developer challenges the "ultrasound money" narrative in Ethereum, pointing out potential exaggeration and use of complex language. Ethereum's sustainable token emission through burning is acknowledged, but a more realistic assessment of its deflationary capabilities is encouraged.
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