Ethereum aims to move towards a deflationary model since EIP-1559, which introduced a mechanism to burn a portion of transaction fees. When more ETH is burned than issued, Ethereum becomes deflationary. Otherwise, when issuance exceeds the amount burned, it remains inflationary. As a result, Ethereum fluctuates between inflation and deflation depending on network activity.
Ethereum aims to move towards a deflationary model since EIP-1559, which introduced a mechanism to burn a portion of transaction fees. When more ETH is burned than issued, Ethereum becomes deflationary. Otherwise, when issuance exceeds the amount burned, it remains inflationary. As a result, Ethereum fluctuates between inflation and deflation depending on network activity.
