Due to the volatility of the minimum commission rate, the number of ETH tokens burned has fallen to its lowest bar in the last few years. At the moment, the commission is 1-2 gwei.
For example, on August 10, only 210 Ether were destroyed as the commission was at the minimum – the lowest this year. In contrast, however, on August 5, the commission was 100 gwei, so 5,000 Ether were burned. This situation resulted in a total issuance of 2,000 ETH.
The current situation was commented on by Gnosis creator Martin Keppelmann. He suggested raising the gas limit for a short period of time.
“At the moment, the fee has reached a minimum of about 0.8 gwei. In order for ETH steaking to generate revenue for users, the commission should be at least 23.9 gwei. If Ethereum developers raise the gas limit, it will level the playing field and improve the recovery strategy,” Keppelmann shared.
The basic fee for burning ETH was introduced back in 2021. This feature is inextricably linked to user activity on the ETH blockchain network and is needed to reduce Ether supply.
The reduction of the ETH fee is a consequence of decreased user activity due to the advent of L2 scaling and the adoption of blob transactions, which were introduced in the March update of the Dencun network.