Ether Supply Inflation refers to the rate at which new Ether tokens are created and added to the total circulating supply of the Ethereum network. This rate directly impacts the asset’s scarcity and its potential value. It is a key economic parameter of the protocol.
Context
Following Ethereum’s transition to Proof of Stake and the implementation of EIP-1559, discussions around Ether supply inflation have altered significantly. The network now experiences periods of deflation, a key economic factor for investors and network participants. This change marks a substantial protocol economic shift.
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