Did you know that Ethereum would soon be Scarcer than Bitcoin?
At least, this is the position of Ethereum proponents.
But how will this happen?
First off, to remove any form of doubt? Ethereum is an inflationary asset. Every year, a given number of new ETH coins are minted to cover project development. In the first year, the Ethereum project minted 12 million new coins or 25 percent for the Ethereum Foundation, tasked with building the network.
However, Ethereum's inflation has been tapering ever since. Part of this is due to the community's outrage and fear of dilution. The other is specific developments designed to make ETH scarce.
In the medium term, ETH's scarcity would likely rise. Once a new improvement proposal is implemented in July, the Ethereum network would automatically be burning over $1 billion of ETH every month. A portion of the ETH transaction fee would be destroyed while the system dumbs down the average Gas fees.
Besides, over $12 billion of ETH are now locked in the Eth2 deposit contract address. They won't be accessible until after the merger, when the Ethereum network becomes a staking network, eliminating miners.
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