Ultra-Sound Money Pause

Definition ∞ Ultra-sound money pause refers to a temporary interruption or reversal of a digital asset’s deflationary trajectory, where its supply was previously decreasing due to mechanisms like token burning. This pause means that the asset’s supply is no longer shrinking, or might even be experiencing slight inflation, for a limited period. It indicates a shift in supply dynamics.
Context ∞ News about Ethereum’s supply dynamics often discusses an “ultra-sound money pause” when the network’s burn rate is insufficient to offset new Ether issuance. This situation can arise during periods of low network activity, leading to a temporary increase in ETH supply rather than a decrease. Investors monitor this metric closely as it impacts the long-term deflationary narrative of Ether. The concept is central to understanding Ethereum’s economic model post-merge.