We’re quickly approaching The Merge, the most notable upgrade in Ethereum’s history and a crucial turning point for the wider crypto industry. As the Ethereum blockchain transitions from proof-of-work (PoW) to proof-of-stake (PoS), The Merge is expected to be the bedrock upon which Ethereum’s scalability improvements are built.

As this highly anticipated event draws closer, the ETH community has begun hypothesizing that the rate of ETH burn will entirely offset and surpass the rate of newly issued ETH (the number of newly minted ETH issued per unit of time), resulting in negative net issuance. The theory is that more ETH will be destroyed than created over time.

But will ETH actually become deflationary post-Merge? In Kraken Intelligence’s latest report, the team takes an analytical deep dive into how The Merge may affect ETH’s net issuance rate.

What does The Merge mean

Keep reading this article on Kraken.com.

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