WHAT DOES “ULTRASOUND MONEY 🦇 🔊 ” MEAN?
Contents:
- What does ultrasound money mean?
- The “meme”.
- EIP-1559 & The Merge effects.
- ETH currently supply.
- An ETH supply prediction.
WHAT DOES ULTRASOUND MONEY MEAN?
The term “ultrasound money”, refers to the Ethereum´s Blockchain compounding synergies, created from EIP1559 and Proof of Stake, and It has been an old-time meme held in Ethereum-based communities, to stand up the differences between BTC and ETH. Bitcoiners describe Bitcoin as “sound money” due to its capped supply of 21 million, and Ethereum community describe ETH as “ULTRA sound Money” due to the its new capabilities after the EIP-1559 and The Merge.
THE MEME.
The meme started off with a tweet from Justin Drake
EIP-1559 & THE MERGE EFFECTS
And the meme refers to:
- Firstly, the EIP-1559 proposal’s burn mechanism that allows Ether’s supply becoming deflationary, which means that more ether is destroyed than crated.
- Secondly to The Merge that happened just a few days ago, when Ethereum moved from PoW to PoS consensus mechanism.
Joseph Lubin, an Ethereum co-founder, said during an interview with Bloomberg TV:
Right now is the democratization of the global decentralized finance system. And this step is the introduction of something that people are calling “ultrasound money” with the EIP 1559 each transaction will burn a base fee, resulting in a decreasing supply of the asset from now on.
ETH CURRENTLY SUPPLY.
ETH, with the Merge has become deflationary
ETH currently has a supply of ~120.5M as shown on @DuneAnalytics,
By shifting from PoW to PoS, all issuance of ETH will be depending on the staking amount of ETH, which has a total amount of ~14M
AN ETH SUPPLY PREDICTION.
Twitter account @ultrasoundmoney has provided a supply prediction of supply increase by ~1% from 2022 to 2024 with current conditions (~14M ETH staked and ~9 gwei in gas)
These are Ethereum´s next steps
Great things take a very long time to build, have a long term view and congratulations to all devs for this new Ethereum huge stage.
